RAMSEY CROOKALL & CO 4th October 2012

      Evening Report

The FTSE 100 ends flat at 5827.78, as investors weigh encouraging US data against ongoing uncertainty about Spain. The lack of direction probably comes ahead of Friday's US nonfarm payrolls print. There are no major UK data points Friday, however, US payrolls are at 12:30.

Tesco shares continued to fall on Thursday, following a disappointing set of second quarter results from the supermarket giant the previous day. Knocking investor sentiment further was broker Exane BNP Paribas, which cut its target on the stock from 325p to 300p, and maintained its underperform rating.

Johnson Matthey was also a faller. The company today announced that it has appointed Colin Matthews, the Chief Executive Officer of BAA since 2008, as a Non-Executive Director.

Mining stocks were among the biggest fallers as a new wave of caution over the spreading of South African strikes washed over investors.

Sector leader BHP Billiton traded in the red today after analysts at Morgan Stanley lowered their price target for the shares from 2,180p to 2,100p.

Sweeteners and food products group Tate & Lyle was another riser after Credit Suisse raised its recommendation for the stock from 'neutral' to 'outperform'. The broker said: "There is no easy way to value Tate & Lyle, but it does seem to us to be a better business for all the changes we have seen and that this is not reflected in the share price (which is down 8% year to date versus a staples sector up 18%)."

Publishing group Pearson saw its shares get a boost from broker Exane BNP Paribas, which upgraded the stock to outperform, while Panmure Gordon kept its hold rating and 1,300p target.

THE FTSE 100             Closed            Up       1        @      5827 THE DOW JONES            @   17:00         Up       67       @     13562 THE NASDAQ               @   17:00         flat          @      3135

Exchange Rates GBP – USD                @       17:00                1.6162 GBP - EURO               @       17:00                1.2430

Commodities

Gold USD/OZ            @        17:00               $1,790