RAMSEY CROOKALL & CO 18th October 2012

      Evening Report

The FTSE 100 ends 0.1% higher at 5917.05, having drifted for most of the session. Miners put in a solid performance after encouraging Chinese data. Barclays slipped after saying it will set a side a further GBP700M for PPI claims. Among mid-caps, Man Group slumped 10% after its 3Q funds under management disappointed.

Shares in IAG got a boost after international trade body the IATA announced that much of August's rise in premium passenger numbers came from the North Atlantic, where British Airways, an airline owned by IAG, dominates. The firm was also boosted by Investec's decision to reiterate its buy recommendation and 190p price target on the stock.

IMI, the global engineering group, was given a boost by RBC Capital, which reiterated its outperform rating on the stock, which follows on from several other positive comments from analysts in recent times, such as Jefferies Group and JPMorgan Chase.

Both Wolseley and CRH were also higher, most likely buoyed by Wednesday's stronger-than-forecast data on US construction starts, which showed a rise to a four-year high. Housing starts rose 15% in September to an annualised rate of 872,000 units, comfortably ahead of market expectations of 770,000.

Meanwhile, with Lloyds Banking Group trading at a 12-month high, Investec has downgraded its rating for the stock from 'hold' to 'sell' and recommends investors to 'seek refuge' in sector peers Barclays and Standard Chartered, both of which are rated 'buys'.  Sector peers Barclays and RBS were also firmly lower, with investors likely to be anxious following German Chancellor Angela Merkel's refusal to bow to pressure over the speedy formation of a single European banking union.

Drinks giant SABMiller was also among the fallers despite seeing good growth in lager volumes shipped across most regions in the first half of its financial year. Weighing on the shares was a ratings downgrade by Shore Capital to 'hold'.

Capital Shopping Centres Group fell on reports that Barclays has placed shares in the company, two people familiar with the deal told Bloomberg.

THE FTSE 100             closed          Up      6          @      5917 THE DOW JONES            @ 17:00         Up       23        @     13580 THE NASDAQ               @ 17:00         Down     7          @      3097











Exchange Rates GBP – USD        @       17:00                 1.6140 GBP - EURO      @       17:00                 1.2312

Gold USD/Oz                       $1,745