RAMSEY CROOKALL & CO

EVENING REPORT

13 OCTOBER 2010

The FTSE 100 index broke above 5,750 briefly ahead of the opening bell on Wall Street, its highest since the end of April, led by a powerful mining sector.

US stocks have started well – the Dow Jones is up almost 70 points – following strong results from Intel and JP Morgan as well as strong indications from the Federal Reserve that further stimulus is imminent.

Xstrata, Anglo American, Rio Tinto and Antofagasta remain the pick of the miners, buoyed by the prospect of increased fiscal stimulus in America, the world’s largest economy. Rio Tinto closed up 176p at £40.38.

Mexico based precious metals miner Fresnillo is also shining after it said silver production reached a record level in the third quarter. The company said it on track to achieve its production targets for 2010 of 340,000 ounces of attributable gold and 41.1m ounces of silver. Standard Chartered, the emerging markets focused bank, has taken a tumble after saying it is preparing for stricter capital requirements for banks with a £3.26bn cash call. The company intends to issue the shares at 1,280p on the basis of 1 new share for every 8 held. The shares closed down 32p at £18.76. Barclays is also lower on the concerns that Standard may not be the only bank to tap shareholders in the near future.

Finally, Rockhopper, the oil and gas explorer that’s found oil in the North Falkland Basin, is mulling fundraising options and warns resource estimates for its Sea Lion discovery are currently about 30% less than predicted in June due to a lack of data.

THE FTSE 100 CLOSED ` UP 85 @ 5747

THE DOW JONES AT 4.30 IS UP 106 @ 11,127

THE NASDAQ COMP AT 4.30 IS UP 21 @ 2439

Exchange Rates

GBP – USD 1. 584

GBP – EUR 1. 134 ??

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