RAMSEY CROOKALL & CO

      12th September 2012

Evening Report

The FTSE 100 ends 0.2% lower at 5782.08. The gains that came earlier in the day fizzled out and by the afternoon. Disappointing UK jobs data weigh on sentiment. In individual stocks, BAE Systems bucks the trend, ending nearly 7% higher following a report that it's in advanced -stage talks with EADS about a possible combination. The FOMC policy announcement is due after the London close.

UK banking stocks advanced after Germany's high court approved the Eurozone's new rescue fund, the European Stability Mechanism (ESM), with Lloyds, Royal Bank of Scotland, Barclays, Standard Chartered and HSBC were making gains by this afternoon.

RBS was also benefiting after Liberum Capital lifted its target price for the stock from 260p to 270p and reiterated its 'buy' rating.

Following fall early on, B&Q owner Kingfisher was trading higher by the afternoon despite reporting that first-half sales and adjusted pre-tax profits slipped 3.3% and 15.5%, respectively, as wet weather and adverse exchange rates put a dampener on its performance. Panmure Gordon maintained its 'buy' recommendation for the shares this morning, saying that the business remains "on track for the long term". 

Telecoms giant BT Group was making gains after Credit Suisse raised its target price for the shares from 250p to 300p and maintained its 'outperform' rating.

Meanwhile, sector peer Vodafone fell on reports that Verizon Wireless's special dividend may be delayed after people close to the matter said that the US mobile-phone joint venture will not discuss it at an upcoming meeting next week.

House-builder Barratt Developments was firmly in the red despite revealing a 159.3% rise in pre-tax profit in the year to June 30th. The group signalled its intention to pay a final dividend in respect of the current financial year, but there was no pay-out for the financial year just gone.

Oil and gas group Afren edged higher after saying that it has started drilling at its Simrit-3 well on the East Simrit prospect in the Kurdistan region of Iraq, just 10km east of the successful Simrit-2 well which was drilled a few months back.

THE FTSE 100             closed      Down      10       @      5,782 THE DOW JONES            @ 17:00     Up        28       @     133351 THE NASDAQ               @ 17:00     Up         6       @      3111 Exchange Rates GBP – USD        @      17:00                1.6111 GBP - EURO      @      17:00                1.2498