RAMSEY CROOKALL & CO 30th October 2012

       Evening Report

The FTSE 100 closed up 0.94%, its biggest rally in two weeks after European corporate earning lifted sentiment. The mining and insurance sectors were stronger today as was BP which topped the leader’s board after announcing third quarter figures. Volumes were significantly lighter than usual due to the US markets remaining closed due to Hurricane Sandy.

Oil giant BP gained ground after profits came in well ahead of forecasts in the third quarter and the company moved early on a dividend increase to nine cents per share (up 12.5%). In its first quarterly announcement since the recent deal with Rosneft, BP reported a clean net income of $5,170m on an underlying replacement cost (RC) basis, well ahead of Investec's $4,020m estimate.

Banking stocks were mixed today, with Barclays and Lloyds making gains whilst Standard Chartered disappointed with its third-quarter results. Despite the negative news-flow today surrounding shares of Barclays analysts at Investec were saying that: "However, given that (unlike others) Barclays did not "low-ball" LIBOR through the crisis, it would not appear to be the most exposed."

Oilfield support services Wood Group was also higher after announcing that it has secured a multi-million pound contract. The £17m contract is to fabricate, install, commission, operate and maintain two weather monitoring stations off the Norfolk and Suffolk coast.

Resolution also got a significant boosted, along with the life insurance sector as a whole, as the sector recovers from signifcant losses seen on Monday, when it likely priced in significant losses ahead of Hurricane Sandy's arrival on the east coast of the US. AMEC shares were on the up after the company reaffirmed its previous revenue guidance for its business in natural resource markets. The company said this is expected to deliver double-digit underlying revenue growth in both 2012 and 2013, even excluding the acquisition of goods.

Meanwhile, United Utilities fell into the bottom spot following reports that Moody's ratings agency had warned that there is on-going regulatory uncertainty in the utilities sector regarding proposed licence alterations. For the same reason, Pennon, which owns South West Water, was also in the bottom 10.

National Grid was lower, most likely on the back of the company's position in the hurricane battered US, where it has issued warnings over power outages and service interruptions.

THE FTSE 100             closed         Up       54     @      5849 THE DOW JONES            closed                                                                              THE NASDAQ               closed











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