RAMSEY CROOKALL & CO

4th July 2012

Evening  Report

The FTSE 100 finished @ 5,684 down 3 points. Volumes were thin today and the market drifted sideways, not only because the US markets were closed for Independence Day but also because many people were glued to their televisions watching [Barclays ex-CEO] Bob Diamond's testimony to the Treasury Select Committee. Barclays shares end the session 0.6% lower. The session was pretty subdued overall as investors look to Thursday's BOE rate announcement. The central bank is widely expected to announce an extension of its bond-buying program.

Potential merger partners Glencore and Xstrata were high risers despite reports the Xstrata shareholder Knight Vinke said it was against the deal on its original terms.

Tobacco giants Imperial Tobacco and British American Tobacco were also in demand after Moody's Investors Service said that European tobacco companies will "continue to generate good cash flow thanks to the pricing inelasticity of tobacco products and growth in cigarette consumption in emerging markets." The ratings agency's outlook for the sector over the next 12-18 months is "positive".

Meanwhile, oil giant Tullow was firmly in the red despite revealing that it revenues in the first half of 2012 would be a record $1.15bn, up from $1.06bn the year before. Analysts at Investec said the trading update was in line with forecasts but has reduced its EPS predictions by around 10% for 2013 and 2014 on the back of lowered Brent crude estimates.

REIT group British Land was falling heavily after going ex-dividend - from today, investors will not have the chance to benefit from their latest dividend payouts.

THE FTSE 100 Closed                                 Down 3     @    5,684

THE DOW JONES is Closed For Independence Day

THE NASDAQ COMP is Closed For Independence Day

Exchange Rates

GBP – USD     @ 16.30            1.5598 GBP - EURO   @ 16.30            1.2451