RAMSEY CROOKALL & CO EVENING MARKET REPORT

28th May 2010

The London market finished marginally higher despite a weak US market as retailers and utilities cancelled weak financials and miners.

Indications that the Dow’s rally would extend to a third day proved wide of the mark as investors decided to bank profits ahead of the long Memorial Day weekend.

Severn Trent lifted its full year dividend by 7.4% after an uplift in revenues and cost cutting measures brought about a sharp rise in profits in the year to March 31. The shares rose 36p to ?11.95.

Leisure and travel stocks were in demand after an upbeat broker note on the sector in which was lauded Thomas Cook, TUI Group and Whitbread.

BP fell sharply again, down 25p to 496p. It says it won’t know if the ‘top kill’ procedure to plug the oil leak in the Gulf of Mexico has worked for another 24 - 48 hours, but in the meantime the costs keep rising, up to $930 million so far. The oil company started the top kill option, which involves pumping massive amounts of mud and cement into the well at high pressure, on Wednesday night..

Life group Prudential this morning confirmed it has had talks over the terms of the purchase of AIG’s Asian arm. Reports overnight said Pru’s chief executive, was in the US trying to get the price of buying AIA deal reduced from $35.5 billion to $30 billion to head off a shareholder revolt that could scupper the deal completely.

Strong weekly sales data from the John Lewis Group has spurred on the prices of clothing retailers Next and Marks & Spencer. The department store group said Fashion was its best performing division, with sales 15% higher than a year ago.

World Markets

THE FTSE 100 CLOSED DOWN 6 @ 5188

THE DOW JONES AT 4.30 WAS DOWN 50 @ 10,208

THE NASDAQ COMP AT 4.30 WAS DOWN 16 @ 2261

Exchange Rates

GBP – USD 1. 4478

GBP – EUR 1. 1714