RAMSEY CROOKALL & CO 24th August 2012

Morning Report

The FTSE 100 trades down 0.1%, remaining slightly lower after UK GDP data for the second quarter met expectations, showing a 0.5% contraction on the quarter, compared with the previously reported 0.7% contraction.

Mining stocks were fallers early on with Kazakhmys, Rio Tinto, ENRC, Antofagasta, Anglo American, Vedanta, BHP Billiton and Randgold falling sharply.

Anglo American dropped after Jefferies downgraded the stock this morning from 'buy' to 'hold' despite yesterday's news that it had resolved a 10-month dispute with Codelco relating to assets in Chile. "While this outcome should be a modest positive for Anglo, we are increasingly concerned about the fundamental outlook for the company," the broker said.

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.

Logistics firm Stobart fell after saying its short-term performance in transport is lower than market expectations as the current recessionary climate continues to hurt the sector.

Platinum miner Lonmin was out of favour after appointing Simon Scott, the group's Chief Financial Officer, as Acting Chief Executive Officer (CEO) while Ian Farmer is receiving treatment for his illness.

In small caps news, upmarket cooker maker AGA Rangemaster dropped over 10% after deciding not to pay an interim dividend as revenues and profits slipped in the first half.

THE FTSE 100              @ 10:30         Down      7         @      5768 THE DOW JONES            closed           Down     115        @     13057 THE NASDAQ               closed           Down     20         @      3053 Exchange Rates GBP – USD        @      10:30                    1.5842 GBP - EURO      @      10:30                    1.2637