RAMSEY CROOKALL & CO

      18th September 2012

Evening Report

The FTSE 100 closed down 0.4% at 5868.16, but off lows as US data lent some support. The US current-account deficit narrowed more than expected in 2Q, while the NAHB housing market index showed that homebuilders' confidence rose to its highest level in more than six years last month. UK CPI numbers brought little reaction. Aviva ends the day 3.78% lower after two rating downgrades. Wednesday sees the release of minutes for the Bank of England's most recent MPC meeting. Investors are likely to watch the publication closely for further signals of whether the BOE is likely to join the ECB and the Fed in unleashing a fresh round of stimulus measures.

Broker downgrades caused insurance titan Aviva to fall by 3.78, pushing the stock's dividend yield beyond seven per cent; BofA Merrill Lynch has downgraded Aviva to 'underperform', although the target price has been raised to 360p from 330p, while Deutsche bank has moved to a 'hold' recommendation and edged up the target price from 360p to 375p.

Meanwhile, Imperial Tobacco and British American Tobacco did well after Nomura lifted its price targets on both this morning.

Berenberg has initiated coverage of household goods colossus Unilever at buy, pushing the stock onto the leaders board this afternoon.

House-building and construction firm Galliford Try saw in the top spot after it saw profits soar last year, paving the way for its full-year dividend pay-out to almost double. Group revenue in the year ended June 30th rose 17% to £1,504m from £1,284m the year before. Profit before tax surged 80% to £63.1m from £35.1m the previous year, while earnings per share jumped 89% to 60.9p from 32.2p last year. The divi rose in line with earnings, from 16p to 30p.

Emergency service provider Homeserve was lower on the back of speculation that it could be about to issue a profit warning following an investigation by the Financial Service Authority, although when questioned the firm has said it has no news to report.

Department store group Debenhams was slightly lower after it reported an increase in like-for- like sales and, despite challenging markets, said it would meet annual profit expectations.

THE FTSE 100             closed      Down        25       @      5,868 THE DOW JONES            @ 17:00     Down         4       @     13548 THE NASDAQ               @ 17:00     Down     2       @      3176 Exchange Rates GBP – USD        @      17:00                1.6250 GBP - EURO      @      17:00                1.2451