RAMSEY CROOKALL & CO

11th July 2012

Evening  Report

The FTSE 100 finished flat at 5664 after a rather lackluster session. In addition, investors have been cautious in light of a downbeat start to the 2Q earnings seasonThe market's main focus, Europe aside, has been on the latest earnings figures from around the globe as concerns rise about a global slowdown, hitting company margins and prompting guidance downgrades. Mid-cap stock Britvic slumps 13.4% after a profit warning.

Luxury brand Burberry sank into the bottom spot after underlying sales growth slowed down from 15% in the fourth quarter to 11% in the first quarter. Analysts were expecting a 13% increase. Both Nomura and Bank of America Merrill Lynch cut their target prices for the stock today.

Precious metals miner Polymetal was another big faller after it said it had lost a multi-million ollar court fight with the Russian authorities.

Chemicals group Johnson Matthey also dropped after UBS downgraded the stock to 'neutral' while banking group Lloyds was suffering from a ratings cut by Liberum Capital to 'sell'.

Meanwhile, insurance firm Aviva was benefiting after the US broker upgraded its rating to 'overweight'.

Glencore International, the Switzerland-based integrated producer and marketer of commodities, was also on the up after announced it is to buy the European manganese ferroalloys operations of Brazilian metals and mining group Vale.

As well, it and Xstrata have set the next 7th of September as the new date for shareholders to approve their proposed combination. That may give them more time to try and win reticent shareholders over some believe.

THE FTSE 100 Closed            Flat            @    5,664

THE DOW JONES @ 16.30      Down 30        @   12,622

THE NASDAQ COMP @ 16.30      Down 13         @   2,888

Exchange Rates

GBP – USD     @ 16.30            1.5529 GBP - EURO    @ 16.30            1.2684