RAMSEY CROOKALL & CO

MORNING REPORT 22 February 2011

The FTSE 100 is back below 6,000 points as the ongoing turmoil in Libya continues to jangle traders’ nerves.

Elsewhere, oil prices are higher again, not good news for British Airways owner IAG, which is one of today’s notable fallers. The high gold price as investors seek a safe haven has lifted African Barrick Gold, while silver producer Fresnillo is also going well.

Other miners are lower, including BHP Billiton. The firm is usually thought of as a miner but it has oil and gas assets too, and it bolstered those Tuesday with the acquisition of Chesapeake Energy’s Fayetteville shale assets.

Higher oil prices won't worry coal-fired power station operator Drax, though the chairman, Gordon Horsfield, did warn of "pressure on coal generation margins due to today's commodity market conditions," as he unveiled forecast-busting 2010 earnings. The shares are up today.

Finally, Drax's earnings before interest, tax, depreciation and amortisation in 2010 totalled £391m, up from £355m last year, and ahead of market expectations of £384m. Total revenue was comfortably ahead of market expectations at £1,648.4m, up from $1,475.8m; the market had pencilled in a figure of £1,426m.

THE FTSE 100 AT 9.00 IS DOWN 74 @ 5940

THE DOW JONES WAS CLOSED

THE NASDAQ COMP WAS CLOSED

Exchange Rates

GBP – USD 1.6142 GBP - EURO 1.1903