RAMSEY CROOKALL & CO

EVENING REPORT 10th January 2011

The FTSE 100 moved sideways over the lunch time trading session. Mining stocks continued to weigh the blue-chip index down. However, oil stocks provided some cheer.

A decline in copper imports into commodity-hungry China sent prices for the red metal lower. Kazakhmys, which transports copper from its Kazakhstan mines to China by rail, is among the heaviest fallers. Fellow miners ENRC, Vedanta and Xstrata are also friendless, while silver miner Fresnillo, which has not had a good 2011 so far, is sharply lower again today.

Oil prices were on the rise, benefiting the likes of Heritage Oil and Tullow. The latter had mixed news this morning, with success on one well in Ghana but a disappointing outcome on a prospect in Mauritania. However, shares in BP fell after the oil giant shut down a major oil pipeline in Alaska due to a leak.

Elsewhere, international recruitment firm Michael Page saw organic growth in all regions in the fourth quarter of 2010, with fourth quarter gross profit up 32.2% to £119.8m from £90.6m a year earlier.

Underlying profits at housebuilder Persimmon will be at the top end of expectations, a good send off for chairman John White who’s retiring after 32 years at the company. A “significant” increase in profit before tax, goodwill charges and exceptional items has propelled the figure towards the upper end of analysts’ forecast which range from £75m to £96m.

Pharmaceuticals firm and bid target ProStrakan nudged 12-month highs after gaining approval from the American authorities for cancer pain drug Abstral.

Finally, shares of LED lighting developer Dialight shot ahead after it confirmed 2010 results are expected to exceed market expectations as demand for its products increases.

THE FTSE 100 CLOSED DOWN 28 @ 5956

THE DOW JONES AT 4.30 IS DOWN 65 @ 11,609

THE NASDAQ COMP AT 4.30 IS DOWN 15 @ 2687

Exchange Rates

GBP – USD 1.55 GBP – EUR 1.20



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