RAMSEY CROOKALL & CO MARKET REPORT MIDDAY

26th May 2010

Share prices in London have continued their strong start as US stocks rallied back from a 300 point decline last night and US futures point to a positive opening on Wall Street this afternoon.

Banks and miners are leading the recovery having been the worst affected by yesterday’s sell off. Lloyds, Royal Bank of Scotland and Barclays are all up 5% or more.

Shares in Rio Tinto are up 180p to ?30.36 after chief executive Tom Albanese increased the pressure on the Australian government over its proposed resources ‘Super Tax’ as he said it is the ‘number one sovereign risk’ faced by the company anywhere in the world.

Cable & Wireless Worldwide, up 2p at 78p, posted earnings in line with forecasts and sees market conditions improving. EBITDA was up to ?431 million for the year to 31 March from ?326 million in 2009.

Luxury retailer Burberry revealed a 23% increase in full year adjusted pre tax profit as it opened more shops and saw strong growth in raincoats and shoes. The full year dividend jumps 17% and the shares are up 49p at 661p.

Stockbroker and investment manager Brewin Dolphin, up 2p at 130p, saw profits and funds under management increase this year. Interim profit before tax rose 37% to ?15.2 million, while total managed funds grew to ?23 billion at the end of March. ‘At this stage there is every indication that the performance of our business will continue to be resilient’ said executive chairman Jamie Matheson.



World Markets

THE FTSE 100 AT 12.20 IS UP 105 @ 5044

THE DOW JONES CLOSED DOWN 22 @ 10,043

THE NASDAQ COMP CLOSED DOWN 2 @ 2210



Exchange Rates

GBP – USD 1. 442

GBP – EUR 1. 169