RAMSEY CROOKALL & CO MORNING REPORT 24 JUNE 2010

UK stocks have opened lower as raw-material companies decline amid concern that a change in leadership of the Australian government may delay an agreement on a proposed profit tax for mining companies.

Shares in BHP Billiton are down 15 to ?19.29. Julia Gillard, the new Australian prime minister, said the new government prefers consultation and negotiation on the proposed Super Profits Tax. Rio Tinto, BHP and Xstrata have led a campaign since last month against the proposed 40% tax, prompting a plunge in Rudd’s support in opinion polls and stalling investment in projects worth at least $21 billion.

Go-Ahead Group decline 3.9% to ?12.68. The company said operating profit margin at the bus unit next fiscal year will fall.

Dana Petroleum fall 7% to ?11.80 after saying it has temporarily abandoned drilling at a well off the coast of Egypt.



THE FTSE 100 AT 10.30 IS DOWN 40 @ 5138

THE DOW JONES CLOSED UP 4 @ 10,298

THE NASDAQ COMP CLOSED DOWN 7 @ 2254

Exchange Rates

GBP – USD 1. 497

GBP – EUR 1. 22