RAMSEY CROOKALL & CO

MORNING REPORT 23 February 2011

London has opened with Libya on its mind amid fears that the unrest sweeping through the country and the Middle East could destabilise Bahrain as well.

Brent crude hit over $107 per barrel, up 1% today, as the violence and rhetoric in Libya increased. Libyan leader Muammar Qaddafi vowed to fight a growing rebellion until his “last drop of blood.” Brent is now at its highest level since September 2008.

Elsewhere, banks are in favour ahead of the results from state-controlled Lloyds and RBS later this week. All of the top risers are bank shares.

Consumer packaging giant Rexam grew underlying profit by a bigger than expected 45% in 2010 and expects further progress this year. Profit before tax and exceptional items jumped to £412m from £285m in 2009 on sales up 2% to £4.96bn.

Net asset value per share surged 15% to 390p from 339p a year earlier at Capital Shopping Centres while net rental income improved by 4%, or 2% on a life for like basis, in 2010 to £277m from £267m in 2009.

Profits jumped by a fifth last year at builders' merchant and DIY shed group Wickes owner Travis Perkins as all 11 of its businesses performed better than the market, though merchanting was the star. Group revenue rose by 8% at £3.2bn, and 5% higher on a like-for-like basis. Adjusted profit before tax up 20% to £217m, though including exceptional charges profits fell from £213m to £197m.

Finally, Cable & Wireless Communications has sold its operating business in Bermuda, to The Bragg Group for total consideration of $70m. CWC will also buy back $100m worth of shares.

THE FTSE 100 AT 10.20 IS DOWN 34 @ 5962

THE DOW JONES CLOSED DOWN 178 @ 12,212

THE NASDAQ COMP CLOSED DOWN 77 @ 2756

Exchange Rates

GBP – USD 1.6255 GBP - EURO 1.1854 ??

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