RAMSEY CROOKALL & CO

24th August 2012

Evening Report

The FTSE 100 recouped losses to end flat at 5776.60, ahead of the long holiday weekend. Sentiment is boosted by late reports that Fed Chairman Bernanke says there is scope for further action by the central bank, while Reuters reports that the ECB is considering setting yield band targets. The index down for the week.

Mining stocks were heavy fallers with Kazakhmys, Rio Tinto, ENRC, Antofagasta, Anglo American, Vedanta, BHP Billiton and Randgold falling sharply, tracking various metal prices lower.

Financials were also out favour with fund manager Ashmore among the worst performers after Citigroup lowered its rating to 'sell'.

Global banking group HSBC was under the weather on rumours that it is in talks about a settlement concerning the allegations of laundering funds of sanctioned countries such as Iran and Sudan.

Meanwhile, Marks & Spencer rose on reports that CVC Capital Partners has considered taking the clothing and food chain private, according to people 'close to the matter'. CVC is believed to have approached executives about taking on a management role as part of a takeover. No further steps towards a bid have taken place, reports said. 

Utilities stocks were benefitting as risk appetite was scaled back. National Grid gained after Nomura said that the stock remains a top pick in the European utilities sector. It is a "compelling growth story [with] rising visibility".

THE FTSE 100             closed            Flat         @      5,776 THE DOW JONES            @ 17:00           Up     63        @     13120 THE NASDAQ               @ 17:00           Up    12        @      3066 Exchange Rates GBP – USD        @      17:00        1.5817 GBP - EURO      @      17:00       1.2621