RAMSEY CROOKALL & CO MORNING REPORT 2 JULY 2010

London has recouped some of yesterday’s losses helped by the Korean interest in Dana Petroleum and an upbeat trading statement from Wickes owner Travis Perkins.

Dana Petroleum last night confirmed the talks with a potential bidder, widely reported to be South Korean national oil company KNOC. The shares are up 17% at ?13.80 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 are 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 are 32p higher at 741p 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 rise 8p to 290p after its recent discovery on the Sea Lion prospect, off the Falkland Islands, have been confirmed as medium grade crude.

THE FTSE 100 AT 10.30 IS UP 17 @ 4822

THE DOW JONES CLOSED DOWN 41 @ 9732

THE NASDAQ CLOSED DOWN 7 @ 2101

Exchange Rates

GBP – USD 1. 519

GBP – EUR 1. 215