RAMSEY CROOKALL & CO MORNING MARKET REPORT

28th May 2010

After an uncertain start the FTSE’s strong recent performance has resumed following good gains on Wall Street last night and bid talks among the builders’ merchants.

Travis Perkins is in advanced discussions with BSS Group which could lead to a cash and shares offer for the distributor of equipment for plumbers worth ?553 million.

Royal Dutch Shell has joined the rush to snap up US shale gas assets with the $4.7 billion purchase of East Resources which operates in the north east of the US.

Water group Severn Trent lifted its full year dividend by 7.4% after an increase in revenues and cost cutting measures brought about by a sharp rise in profits. The shares are up 18p at ?11.77.

BP, down 11p at 509p, 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 to 48 hours, but in the meantime the costs keep rising, up to $930 million so far.

Life group Prudential this morning confirmed it has had talks over the terms of the purchase of AIG’s Asian arm (AIA) trying to reduce the price from $35.5 billion to $30 billion to head off a shareholder revolt that could scupper the deal completely.

Internet gambling group 888 has warned that full year profit is likely to be significantly lower than previous market expectations due to ongoing weakness at the online poker business and the strong dollar.

World Markets

THE FTSE 100 AT 9.45 IS UP 34 @ 5229

THE DOW JONES CLOSED UP 284 @ 10,258

THE NASDAQ COMP CLOSED UP 81 @ 2277

Exchange Rates

GBP – USD 1. 453

GBP – EUR 1. 173