RAMSEY CROOKALL & CO

MORNING REPORT

9th December 2010

The leading share index is posting good gains this morning, with the mining sector on the march as metals prices advance.

Platinum specialist Lonmin has led the FTSE 100 higher. Copper miners Antofagasta, Kazakhmys and ENRC are also in demand, as are the Australian iron ore duo Rio Tinto and BHP Billiton.

Copper has been hitting record levels amid concerns over production shortages.

Elsewhere, banks are also strong, with Lloyds and RBS among the top risers, but Asia-focused Standard Chartered is lower after a trading statement. It is expecting another record year for profits and revenues though it did complain of increasing competition for staff and higher regulatory costs.

Shares in packaging group DS Smith rose after it announced higher revenues and profits in the first half and said the strong performance had continued despite rising input costs. Pre-tax profits in the six months to 31 October climbed by 17.5% from the same period the previous year to £40.2m. Revenues by 15.3% to £1.17bn.

Finally, as expected, “extremely difficult” market conditions and a bigger than expected first half loss have forced CD and DVD retailer HMV to slash the interim dividend. The owner of book chain Waterstone’s lost £41.3m before tax in the 26 weeks ended 23 October, up from £24.9m last year and worse than the City had predicted. And things haven’t gone well at the start of the key Christmas trading period, with the snow “significantly” affecting consumer footfall.

THE FTSE 100 AT 9.45 IS UP 11 @ 5805

THE DOW JONES CLOSED UP 13 @ 11,372

THE NASDAQ COMP CLOSED` UP 11 @ 2200

Exchange Rates

GBP – USD 1.57 GBP – EUR 1.19