RAMSEY CROOKALL & CO  28th June 2012

Evening Report

The FTSE 100 closed 0.6% lower at 5493.06, with the banking sector weighing on the index.

Barclays slumped 15.5% in today’s trading, the stock's lowest closing level in nearly seven months,  its biggest percentage decline in a single session for over three years. Shares in Barclays were under heavy selling pressure after the banking group was found guilty of 'market manipulation' into interbank lending rates, prompting calls for the resignation of Chief Executive Officer Bob Diamond. Several other banks, including HSBC, Royal Bank of Scotland (RBS) and Lloyds, are also facing an inquiry into rigged Libor manipulation, it has been reported.   Polymetal suffered after a downgrade by UBS from 'buy' to 'neutral' due to the "recent strong share price performance and weaker silver prices".

Investors have sought the typically "safe-haven" stocks as concern mounts at the start of a two-day EU summit aimed at dealing with the debt crisis in the region. As such, Aggreko, United Utilities and Severn Trent were all bucking the generally downward trend to make small gains during the afternoon.

Betting firm Ladbrokes dropped significantly after it issued a profit warning for its Digital division, blaming increased technology investment, marketing spend and a poor sportsbook margin in the second quarter of 2012. Peel Hunt downgraded the stock from 'buy' to 'hold' this morning.

News Corp. will separate its publishing assets, including the Wall Street Journal, from entertainment units like 20th Century Fox and Fox broadcast networks, to increase the operations' flexibility.

THE FTSE 100             closed             Down        30     @      5,493 THE DOW JONES            @ 17:00            Down        131    @     12495 THE NASDAQ               @ 17:00            Up         38     @      2836 Exchange Rates GBP – USD        @      17:00              1.5563 GBP - EURO      @      17:00              1.2468