RAMSEY CROOKALL & CO

EVENING REPORT

7 OCTOBER 2010

Better than expected US jobless figures have given the UK market a lift, with the FTSE 100 now nearing 5700. Mining stocks are, by and large, still refusing the join the party. Copper miners Kazakhmys and Antofagasta lead the sector lower and closed down 64p at £12.49. Indian miner Vedanta is holding up though after saying it produced record amounts of zinc, lead and aluminium during the second quarter. In the three months to 30 September it grew refined zinc output by 25% to 176,000 tonnes to make it 341,000 tonnes for the half-year, an increase of almost 22%.

However, like for like sales growth at high street bellwether Marks & Spencer’s UK stores were well ahead of market expectations in the third quarter. UK like for like (LFL) sales had been expected to be up year on year by anywhere between 1.3% and 4.6%; M&S delivered a 5.3% increase in the 13 weeks to 2 October. The shares closed up 19p at 410p.

Car parts and bikes seller Halfords is lower after an update showed it is finding it an uphill struggle at the moment and slightly harder than analysts had imagined following recent warehouse disruption. Like for like sales fell 5.8% during the second quarter following a 4.5% drop at the retail business and 1.5% decline at Autocentres. Analysts were looking for 4-5%.

And finally, n its latest trading update, luxury handbag maker Mulberry, said it has exceeded its expectations with improved margins from sales. The shares stormed higher after the group said profits for the year to 31 March 2011 should be significantly above market expectations. Also, first half profits surged at trendy fashion retailer Ted Baker as both UK and international sales roared ahead. Sales in the first half of the year to June rose by 15% to £88.1m with profit before tax up 25% to £7.5m.

THE FTSE 100 CLOSED DOWN 19 @ 5662

THE DOW JONES AT 4.30 IS DOWN 17 @ 10,950

THE NASDAQ COMP AT 4.30 IS UP 8 @ 2389

Exchange Rates

GBP – USD 1. 586

GBP – EUR 1. 14

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