RAMSEY CROOKALL & CO   20th June 2012 Evening Report

The FTSE 100 closed up 0.6% higher at 5622.29. The FTSE has been boosted once again by the prospect of further stimulus from central banks. Meanwhile, expectations are high for an extension of Operation Twist to be announced later this session by the US Federal Reserve.

Accountancy software behemoth Sage Group was the best performer on the blue-chip index today after acquiring a majority interest in Folhamatic Group, a provider of accounting, tax and payroll and regulatory content software in Brazil, for 125m pounds. Investec upgraded its rating on the stock today from 'sell' to 'hold' after the shares surpassed its target price.

Insurance giant Aviva was on the rise after Fitch Ratings said that insurance companies are less exposed than banks to contagion risk triggered by a Greek exit from the Eurozone "because of insurers' ability to share losses with policyholders and their lower reliance on short-term funding." Prudential, Legal & General and RSA Insurance also made gains.

Costa and Premier Inn owner Whitbread was extending its gains after its well-taken first-quarter results yesterday; total sales in the 13 weeks to May 31st were up 13.9% on the corresponding period of 2011, with LFL sales up a better-than-expected 4.5%

Heading the other way were heavyweight utilities stocks Severn Trent and United Utilities after going ex-dividend; from today, investors will not have the right to their latest dividend payments.

Oilfield services group Petrofac dropped despite being declared as the selected bidder on the Pánuco integrated production service contract in Mexico.

Research in Motion has started laying off small batches of employees, part of a broad restructuring meant to cut costs at the struggling BlackBerry maker, people familiar with the situation told The Wall Street Journal.

THE FTSE 100             closed       Up          35    @      5,622 THE DOW JONES            @ 17:00      Down        17    @     12819 THE NASDAQ               @ 17:00      Up         1     @      2931

Exchange Rates

GBP – USD        @      17:00         1.5744 GBP - EURO       @      17:00         1.2394