RAMSEY CROOKALL & CO
MIDDAY REPORT 13th January 2011
The top share index is little changed in early dealings though there
are some notable movers in both directions, particularly in the retail
sector.
Tesco falls after the snow and ice meant UK like for like sales were
weaker than expected and lagged rivals. Like for like sales in the UK
for the six weeks to 8 January were up just 0.6% - about half the figure
analysts had predicted – and total sales grew 4.2%.Group sales rose 7.6%
during the period though, with international sales up 14.2%. Asia leapt
24.2%, led by China and Thailand.
Electrical retailer Dixons is lower after it said wintery weather ahead of
Christmas kept some shoppers away, but saw strong trading from Boxing day as
customers stocked up on 3D TVs and other must have gadgets ahead of the
January VAT rise. The owner of Currys and PC World said sales in the 12
weeks to January 8 were down by 1% from the same period the previous year,
or by 2% on a like-for-like basis, excluding the impact of new stores.
Home Retail Group is in demand after it said expects full-year pre-tax
profits to come in at the mid-point of its previously guided range of £250m
to £275m after both of its brands performed in line with expectations. Sales
at the catalogue-based chain Argos fell by 3.2% to £1.861bn in the 18 weeks
to 1 January, or by 4.9% on a like-for-like basis, stripping out the benefit
of new stores. Kingfisher, the owner of the B&Q chain, climbs in sympathy
THE FTSE 100 AT NOON IS DOWN 18 @ 6032
THE DOW JONES CLOSED UP 83 @ 11,755
THE NASDAQ COMP CLOSED UP 4 @ 2737
Exchange Rates
GBP – USD 1.57
GBP – EUR 1.19
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Thursday 13th, January 2011 12:11pm.
