RAMSEY CROOKALL & CO

EVENING REPORT

1 OCTOBER 2010

The afternoon session has seen the FTSE 100 confident, almost regaining its high for the day which was hit shortly after 10:00am. A solid start by Wall Street on the back of better than expected spending data has helped sentiment this side of the pond.

Among positive news, oil giant BP is higher amid speculation that dividends will soon be resumed. Bob Dudley, who becomes chief executive of the oil company today, said that the board would meet soon to discuss restoring payouts next year, according to newspaper reports. The stock closed up 12p at 440p.

BP’s rival BG is doing better still. BG’s Spanish peer Repsol has announced a deal with the Chinese refiner Sinopec, which will result in Sinopec holding a 40% stake in Repsol’s Brazilian unit. BG Group and Repsol have been exploring for oil in waters of Brazil in partnership and the deal is also seen as supportive to BG.

Mexican miner Fresnillo gets a boost from JPMorgan Cazenove, which has lifted its price target for the stock from 990p to 1400p, but fellow gold and silver miner Hochschild slips back after Cazenove switched its rating from “overweight” to “neutral”. Fresnillo closed higher at £12.70.

In the FTSE 250, drugs group Hikma Pharmaceuticals has moved to calm fears about the impact of a plan by US regulators to ban unapproved oral colchicine products to treat gout. The company said it will comply with any FDA regulatory requirements related to the sale of colchicine “if such a notice is served”, but still predicts 20% revenue growth for its US generics business for the full year 2010 “irrespective of the timing of such notification”.

THE FTSE 100 CLOSED UP 44 @ 5592

THE DOW JONES AT 4.30 IS UP 26 @ 10,815

THE NASDAQ COMP AT 4.30 IS DOWN 6 @ 2361

Exchange Rates

GBP – USD 1. 5717 GBP – EUR 1. 1537