RAMSEY CROOKALL & CO

EVENING REPORT

26 AUGUST 2010

With mining stocks back in fashion the FTSE 100 maintained gains established in the earlier part of the day.

Fresnillo is the top performer in the mining sector but Kazakhmys is not far behind after a strong set of interim results. An improvement in copper prices helped post a sharp rise in half year revenues and earnings. Xstrata moved higher after reporting a 42% jump in first half net income.

Elsewhere the first half saw a record operating performance from engineering and project management group Amec with growth in the second quarter ahead of expectations.

Security firm G4S is another blue chip seeing positive reaction to its results. Sales and underlying profits in the first half of 2010 were slightly ahead of market expectations, despite the trading environment remaining challenging. Group turnover was up 4% at £3,63 billion from £3,49 billion.

Meanwhile, figures from SEGRO and Diageo have disappointed. SEGRO, the industrial property owner is the biggest faller despite edging up interim net asset value. Broker Panmure Gordon remains buyers of the shares, but Evolution Securities is playing down the prospect of NAV growth in the second half.

Brokers called full-year numbers from Diageo ‘lacklustre’. Developing markets drove overall growth at the Guinness brewer, but North America and Europe remained weak. The group, famous for brands such as Smirnoff, Johnnie Walker, Captain Morgan and Baileys, said US volumes fell 2% in the year to 30 June. Organic sales growth of just 2% failed to impress.

THE FTSE 100 CLOSED UP 46 @ 5155

THE DOW JONES AT 4.30 IS DOWN 2 @ 10,058

THE NASDAQ COMP AT 4.30 IS UP 7 @ 2148

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