RAMSEY CROOKALL & CO

MORNING REPORT 2 February 2011

Mining stocks are driving London higher in the early going as the price of copper rose to record levels in New York and London, following unexpectedly good US manufacturing figures yesterday.

The giants of the mining sector, BHP Billiton and Rio Tinto, are both sporting solid gains, as are Lonmin, Xstrata and Vedanta, while even precious metals miners Randgold and Fresnillo garner support, but they all trail behind ENRC, after the Kazakhstan-based miner’s trading update.

Elsewhere, tobacco company Imperial Tobacco is the top performing blue-chip, however, after it said it has made a good start to its financial year. Underlying tobacco net revenues were up 5% in the final quarter of 2010, while it also saw increased cigarette and fine cut tobacco volumes, resulting in total stick equivalent volumes up 1.2%. The group expects to bump up the full year dividend pay-out ratio this year to 50% of adjusted earnings per share.

Finally, JD Sports has confirmed speculation it has made an offer for struggling rival JJB Sports, though adds discussion are at a very early stage.

THE FTSE 100 AT 9.30 IS UP 40 @ 5998 THE DOW JONES CLOSED UP 148 @ 12,040

THE NASDAQ COMP CLOSED UP 51 @ 2751

Exchange Rates

GBP – USD 1.61 GBP - EURO 1.17