RAMSEY CROOKALL & CO
EVENING REPORT 31 January 2011
The FTSE 100 closed more or less back to square one after a lunchtime trading session
which saw US oil giant Exxon announce better than expected fourth quarter figures.
Travel companies were friendless as investors fretted about civil unrest in the popular holiday
destination of Egypt. Airline IAG, the former British Airways, TUI Travel, Thomas Cook Group
and Intercontinental Hotels have all run into turbulence.
Budget airline Ryanair is one travel-related stock that had a good day, however. The no-frills
operator is not only still on track to match full-year profit forecasts despite a loss-making
third quarter hit by strikes and bad weather that caused over 3,000 flights to be cancelled, it
also thinks that profits will be towards the upper end of its guidance range.
Elsewhere, National Grid is restructuring its US business and its management structure and believes
that it can save $200m (£125m) a year in its US operations.
Brewer and pubs owner Greene King was in demand after it saw healthy trading over the past eight weeks
despite the poor weather with all of its divisions in-line or improving from the half-year.
Finally, oil group BG Group was higher after Chevreaux issued a broker note on the firm, with an
“outperform” rating and a 1600p price target. BG has signed up engineering and project management
group AMEC to provide services for all of its facilities in the central North Sea. The three year
contract, worth £140m, is to provide engineering, procurement, construction, commissioning and
project management services.
THE FTSE 100 CLOSED DOWN 18 @ 5882
THE DOW JONES AT 4.40 IS UP 25 @ 11,849
THE NASDAQ COMP AT 4.40 IS UP 4 @ 2691
Exchange Rates
GBP – USD 1.60
GBP - EURO 1.16
Monday 31st, January 2011 05:11pm.
