RAMSEY CROOKALL & CO MORNING REPORT

9 SEPTEMBER 2010

Shares have nudged higher in early dealings although updates from the retail sector were given a frosty reception.

Supermarket Morrisons are 4p easier even though it posted profits broadly in line with expectations for the six months to August 1. It also unveiled a move into the convenience store market as new chief executive Dalton Philips makes his mark on the company.

Retailer Home Retail Group are down 8p having disappointed the market with its prediction that unless Christmas is a cracker this year profits are likely to be in the bottom half of the range of analysts’ estimates.

And music and DVD retailer HMV fell sharply, albeit after strong gains yesterday as it posted a 10.6% decline in first quarter sales as potential customers were distracted by the World Cup. The group, which is struggling to compete with internet rivals and supermarkets, said UK & Ireland like for like sales in the 19 weeks ended 4 September 2010 fell 14.9%.

Elsewhere, the spat between Kazakh mining giant Eurasian Natural Resources (ENRC) and Canadian miner First Quantum Minerals (FQM) over ENRC’s acquisition of a majority interest in Camrose Resources is getting tetchier. ENRC has sent a letter to FQM complaining about recent statements made by the Canadian company which ENRC believes are an attempt to interfere with the Kazakh company’s rights to develop the Camrose joint venture and the Kolwezi tailings project.

Finally, higher house prices helped home builder Redrow move back into profit in the year to June 30, but the outlook remains uncertain. The company posted a pre-tax profit of £0.7m against a loss of £44.2m the previous year, as revenues jumped to £396.9m from £301.8m. Redrow shares are 5p lower at 125p.



THE FTSE 100 AT 10.00 IS UP 27 @ 5457

THE DOW JONES CLOSED DOWN 46 @ 10,387

THE NASDAQ COMP CLOSED DOWN 19 @ 2228

Exchange Rates

GBP – USD 1. 5385 GBP – EUR 1. 2123