RAMSEY CROOKALL & CO

MORNING REPORT 6 OCTOBER 2010

London’s leading index has hit fresh five-month highs after the surge on Wall Street overnight. The FTSE 100 is now at its highest since April.

Miners have driven this mornings gain with the top five risers all mining companies. Antofagasta, Anglo American, Kazakhmys and Xstrata are the best performers, but there are healthy rises across the sector. However, Rio Tinto and BHP Billiton will likely see more action as the day progresses. Late last night, Rio said it has not made any decision about a possible $116bn iron ore joint venture with BHP in Western Australia. There are reports Rio has killed the deal off after failing to get regulatory approval.

Airlines have taken off after no-frills airline Easyjet forecast profits this year will be more than £150m, better than the top of its previous forecast range, after lower volcano ash costs and better demand for European short-haul flights. British Airways is up in sympathy.

Supermarket chain Sainsbury’s has outdone arch rival Tesco, reporting a 2% increase in like for like sales excluding fuel for the first half, in line with market expectations. Britain’s number three supermarket grew like for like sales, ignoring petrol, by 2.9% in the second quarter. It was 1.2% in the first three months. Tesco managed just 0.3% in the first half, 0.4% for the second quarter and 0.1% for the first.

Hungry Britons have been tucking into the bacon rolls sold by Greggs, contributing to continued sales growth for the savoury snacks seller. Total sales for the 39 weeks ended 2 October increased by 2.6%, while like-for-like (LFL) sales grew 0.5%. Sales growth lowed some in the third quarter to 0.2%. “We anticipate that like-for-like sales in the final quarter will be broadly flat and therefore marginally positive over the year as a whole,” said chief executive Ken McMeikan.

THE FTSE 100 AT 9.45 IS UP 54 @ 5690

THE DOW JONES CLOSED UP 193 @ 10,944

THE NASDAQ COMP CLOSED UP 55 @ 2399

Exchange Rates

GBP – USD 1. 59

GBP – EUR 1. 146

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