Market Overview: London Stock Exchange (FTSE100) 2011, wk.

14

Highlights:
 FTSE100 index increased by 1%, reaching 6055.75 points.

 The biggest losers: Centrica PLC -2.71% and Pearson PLC -2.2%.
 The biggest gainers: Marks And Spencer Group PLC +7.24% and Antofagasta PLC
+6.17%

It was a positive week for the largest stock market in Europe - London Stock Exchange. The
FTSE100 index increased by 1%, from 6009.92 to 6055.75 points. The biggest gainers this week
were Marks And Spencer Group PLC and Antofagasta PLC with an increase +7.24% and
+6.17% respectively. Shares which lost the most of their value were Centrica PLC with -2.71%
and Pearson PLC with -2.2%. The turnover for the week was about 4 billion EUR.
By having a look at the graph of FTSE100, we can see a W form development of the market. At the
beginning of the week, the market was facing a negative trend, but a rebound appeared on
Wednesday when retailers and banks came with a positive 4th quarter results. Theoretically, the
negative increase in ECB interest rate together with another strong earthquake in Japan was met
with pessimistic moods and the index declined again. However, the peak was reached on Friday as
it was the most successful day for investors. The most important factor was that the prices of raw
metals kept climbing up. This spiked the price of mining companies.

London Stock Exchange FTSE100 index performance during the week (04.04.11 – 08.04.11). Source: Financial times.

Marks And Spencer Group PLC was a company which was the most successful this week. It
experienced growth in share value by 7.24%, opening the week at 337.20 EUR and closed it at
359.60 EUR. In the begging of the week Marks And Spencer Group PLC experienced slight
increased as there were announcement that filial successors are a vanishing brood. However, the
1% share value increase on Monday was very small in comparison to rocket boom upward sloping
share value on Wednesday. On this day there was a couple of news that improved investor’s mood:
retailers face up to challenge of rising costs and M&S looks to shrug off commodities increases. For

1 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: London Stock Exchange (FTSE100) 2011, wk. 14

the clothing and furniture company it was very important and made a big impact on the investor’s
reaction. After the announcement that senior Morrison executive defects to M&S there was a slight
decrease in Marks And Spencer Group PLC share value on Thursday. The week ended with
small 0.76% increase on Friday. Overall, taking into consideration this week performance and
growing share value last days, we predict continuing growth next week.

Marks And Spencer Group PLC index performance during the week (04.04.11 – 08.04.11). Source: Financial times.

Antofagasta PLC was the second most improving company this week. During the week, its
preference shares increased by 6.17%, reaching 1477 EUR. All over the week share value was
constantly increasing, except Thursday, when there were -1.29% decrease, mainly caused by the
news of China’s copper stockpiles weigh on industry. As Antofagasta PLC is a Chilean-based
copper mining group with interests in transport and water distribution which also operates in China,
these news made a strong impact on investor’s mood and index decreased. In conclusion, we can
see, that this industry has a nice prospects for future and continuing increase next week would be
most possible and logical scenario.

Antofagasta PLC index performance during the week (04.04.11 – 08.04.11). Source: Financial times.

2 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: London Stock Exchange (FTSE100) 2011, wk. 14

The week’s biggest loser was Centrica PLC whose share value decreased by 2.71%. Centrica
PLC opened the week at 328.60 EUR and closed it at 320.30 EUR. Centrica PLC is an integrated
energy company operating predominately in the UK and North America. While small increase in
share value on Monday was observed, during the next three days constant recession took place. This
is mainly caused by report, which shows that emissions reporting plan is set to be curved and the
news about co naught banks to take hit on loans. On Friday slight increase was observed again, as
Centrica PLC share value increased by 0.22%. This can be explained by constant energy prices
growing in the world. Conclusion: share price is heavily dependent on energy price growing in the
world and internal processes in the company. Therefore, we recommend be very careful with this
stock; notwithstanding growing energy prices, there are some internal problems in the company
right now and it is hard to predict, how it will respond on Centrica PLC share value.

Centrica PLC index performance during the week (04.04.11 – 08.04.11). Source: Financial times.

The future is still very unclear for London stock exchange as well as for world’s stock markets. The
price of oil, gold and silver is going up, ECB raises interest rates and they are expected to rise more
in the future. These are the factors that should make a downward pressure on prices of stocks in the
long run. Also, rumor has it that investors are willing to take a “shorting” strategy on UK banks
which play a very important role in the stock market. However, stock prices are still below the pre-
crisis level and it should move towards equilibrium. It is hard to make any expectations for the
future as there are many different influential things happening in the world that obviously create a
question, which of them will be the most important ones.

Written by Adomas Aleksandravičius, Edgars Lelis, Laura Zauere

3 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.