RAMSEY CROOKALL & CO

EVENING REPORT 26 January 2011

Shares maintained their earlier buoyancy after a decent start on Wall Street. Company updates have been well-received here.

Heritage Oil has uncovered the largest gas field to be discovered in Iraq for more than 30 years, but the news took the market by surprise as the field had been expected to contain oil rather than gas. Shares fell 17% in early trading despite the significant find, with broker Panmure Gordon saying that “there is likely to be some disappointment for many of the more optimistic followers who had hoped that the well would prove up significant new oil reserves.” Elsewhere, water supplier United Utilities has been trading in line with expectations since October, with regulated revenue slightly higher than anticipated, though it will tail off in the second half.

Newsagent WH Smith’s high street stores were hit by tough trading conditions and the winter freeze, but profits met forecasts and gross margin is ahead of plan. In what the newspaper, books and stationery retailer called a “resilient” performance, total sales for the 21 weeks to 22 January fell 4% and were down 5% on a like for like basis.

Finally, final quarter sales at soft drinks group AG Barr, best known for its Irn Bru and Tizer brands, is expected to be around 5% ahead of the previous year after a strong performance from its core brands. Full year like for like growth is expected to be around 10%, the group said in Wednesday's trading update.

THE FTSE 100 CLOSED UP 51 @ 5969

THE DOW JONES AT 4.30 IS DOWN 5 @ 11,971

THE NASDAQ COMP AT 4.30 IS UP 18 @ 2737

Exchange Rates

GBP – USD 1.58 GBP - EURO 1.16