RAMSEY CROOKALL & CO

15th  November 2012

Evening Report

The FTSE 100 ends 0.8% lower at 5677.75, close to session lows, as global growth worries weigh.Evraz, the steel, mining and vanadium group, recovered 3% after proposing that a covenant be removed relating to $577m of outstanding guaranteed notes due 2015.

Evraz is seeking to remove a covenant requiring the company to maintain the net leverage ratio at or below a specified level. The statement from the company stressed that it is not actually in breach of this covenant or any of the others, but the market still took fright at the news.

Fellow mining stocks, as well as bankers, were performing relatively well today despite the macroeconomic uncertainty, with Kazakhmys, Xstrata, RBS and Barclays among the best performers.

GKN was also a strong riser, boosted in part by reports that it has revised its Memorandum of Understanding (MOU) with Shanghai Aircraft Manufacturing Company and formed a deal over manufacturing development and intellectual property rights.

Oil giant BP closed flat after rising earlier in the session after resolving claims with US regulators relating to the Gulf of Mexico oil spill in 2010. The resolutions are expected to represent the largest criminal penalty in history.

Meanwhile, oilfield services firm Wood Group sank after Nomura named its as one of the "top 'reduces' for 2013." The broker said that the stock is trading at a 24% premium to the sector average which is "unwarranted given undifferentiated business model and limited upside to EPS."

Utilities company Pennon Group fell after saying its company's recycling revenues in the first half are expected to be £18.8m lower than the same period last year. Life insurer Resolution tanked after a somewhat mixed update, saying that new business profitability is continuing to improve, but that its international business is "below par" and it will incur higher costs from IT updates.

Barclays Capital reduced its target price on AMEC from 1,350p to 1,320p,and retained its underweight rating.







THE FTSE 100        closed       Down      44     @       5677 THE DOW JONES       @ 17:00      Down      56     @      12514                                                      THE NASDAQ          @ 17:00      Down      12     @       2834

Exchange Rates GBP – USD           @  17:00    1.5863 GBP - EURO          @  17:00    1.2410

Gold USD/Oz         $1,715