RAMSEY CROOKALL & CO

MORNING REPORT

23 AUGUST 2010

London has opened very quietly. Old Mutual, the Anglo-South African insurer that’s overhauling its business following the financial crisis, has received a bid from HSBC for up to 70% of Nedbank and is the best performer.

The London listed firm is a majority owner of South Africa’s fourth biggest bank, currently worth almost $10 billion, with a 52% stake. Old Mutual said it has had preliminary discussions with the South African regulatory authorities about the merits of the transaction, but they still have to mull over the details.

Australian-focused firms are quiet as they await news of who has won the general election in the country. Rio Tinto and BHP Billiton are little changed this morning.

Oil and gas services group Petrofac posted a 55% jump in half year earnings and said it expects to deliver like for like net profit growth for the full year.

Bovis plans to resume dividend payments at the end of the year after swinging to a half year profit. However, the housebuilder also remains cautious in its expectations of transaction volumes and sales prices in the short term given the low levels of consumer confidence and the ongoing challenges in the mortgage market.



THE FTSE AT 10.00 am IS UP 26 @ 5221

THE DOW JONES CLOSED DOWN 57 @ 10,213

THE NASDAQ COMP CLOSED UP 1 @ 2179

Exchange Rate

USD - GBP 1. 555

EUR - GBP 1. 225