RAMSEY CROOKALL & CO
EVENING REPORT
30 JULY 2010
The FTSE hit new lows in the aftermath of disappointing US gross domestic
product for the second quarter. Inflation adjusted and gross domestic product
rose at an annualised rate of 2.4% in the second quarter, a significant slow
down from the 3.7% annualised gain in the first quarter.
Investors turned to utilities after EDF sold its electricity grid operation to
a consortium headed by Hong Kong billionaire Li Ka-Shing for £5.8 billion.
United Utilities rose 24p to 585p.
Ash clouds from Iceland and strike action cause losses to grow at British
Airways during a tough first quarter, although the airline still expects to
break even for the year. The shares are up 3p at 218p.
Losses before tax jumped to £164 million in the three months ended 30 June
from £148 million a year ago as revenue fell by £46 million, or 2.3%, to
£1.94 billion.
Anglo American’s interim results came in slightly below analyst forecasts
but the mining giant said it remains confident about its prospects. The
group also announced that it reinstated its dividend payments with an
interim dividend of 25c per share.
Rentokil is to merge its pest control and washrooms businesses to cope with
‘increasing price pressures’, especially in Europe. Profits in the half
year to June rose from £8.2 million to £30.9 million.
Paper and packaging group Mondi confirmed underlying operating profit for the
first half of 2010 will be considerably higher than last year. The shares
closed up 3p at 450p.
THE FTSE CLOSED DOWN 42 @ 5271
THE DOW JONES AT 4.30 IS DOWN 16 @ 10,450
THE NASDAQ COMP AT 4.30 IS UP 1 @ 2252
Exchange Rates
GBP – USD 1. 569
GBP – EUR 1. 203
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