RAMSEY CROOKALL & CO EVENING REPORT 2 JULY 2010

The release of US jobs data checked the FTSE’s rise this afternoon, however, the blue chips still managed reasonable gains. US jobs data for June came in worse than expected overall, but it was a mixed message with the unemployment rate falling to a 12 month low.

Dana Petroleum was the star performer after it confirmed last night it is in talks with a potential bidder, reported to be South Korean national oil company KNOC. The shares closed up 22% at ?14.40 today valuing Dana at about ?1.3 billion. The talk is of a bid being worth around ?1.5 billion though Dana said the discussions are at a very early stage.

Mining stocks were stronger on the Australian government’s decision to replace the controversial Resources ‘Super Tax’ with a more moderate alternative. In a joint statement, BHP Billiton, Rio Tinto and Xstrata welcomed a new Mineral Resource Rent Tax (MRRT) that would only apply to iron ore and coal resources from 1 July 2012.

The battle for ownership of Chloride looks set to come to an end after the electrical plugs maker recommended a 375p per share bid by US giant Emerson.

Builder’s merchant Travis Perkins shares climbed 45p higher to 754p after a strong rebound in trading since March. The Wickes owner now expects its first half will beat its expectations while dividends will resume again with a 5p interim. Group revenue for the six months ended 30 June was up 4.7%, with like for like sales up 3.4%.

Shares in oil explorer Rockhopper rose 13p to 295p after its recent discovery on the Sea Lion prospect, off the Falkland Islands has been confirmed as medium grade crude.

THE FTSE 100 CLOSED UP 32 @ 4838

THE DOW JONES AT 4.30 IS DOWN 64 @ 9668

THE NASDAQ AT 4.30 IS DOWN 9 @ 2091

Exchange Rates

GBP – USD 1. 518

GBP – EUR 1. 207