RAMSEY CROOKALL & CO May 17th  2012

 Evening Report

The FTSE 100 closed 1.2% lower at 5338.38. Banks and other financials were among the worst performers today as the Greek situation continued to weigh on sentiment. Meanwhile, a much weaker-than-expected May reading from the Philly Fed business index also added to the downbeat tone.

Mining and financial stocks provided a drag on the FTSE today, as investors continue to flee from 'risker' assets amidst the global economic uncertainty. Providing further downward pressure on the resources sector was US broker Jefferies after having slashed its target prices for mining stocks under its coverage by an average 10% after recent under- performance.

Diversified mining group Vedanta Resources was a heavy faller as full-year revenue came in slightly below forecasts. Sector peer Antofagasta also dipped into the red despite seeing group turnover and EBITDA jump 38.9% and 35.4%, respectively, in the first quarter. The group did however reveal that copper production fell 12.9% quarter-on-quarter.

In financials, insurance group Aviva fell after saying that operating profit for the first quarter of the year was marginally lower year-on-year. Elsewhere in the financial sector, banking peers Barclays, RBS and Lloyds were also coming under some selling pressure.

Meanwhile, interdealer broker ICAP rose after UBS upgraded its rating on the stock from sell to neutral and raised its target price from 310p to 330p.

Energy supplier National Grid also edged higher after increasing profits and the dividend in the 2011/12 fiscal year. However, revenues eased and capex guidance for the 2012/13 fiscal year was revised higher.

THE FTSE 100             closed           Down        66      @      5,338 THE DOW JONES            @ 17:00          Down        53      @     12545 THE NASDAQ               @ 17:00          Down        30      @      2843 Exchange Rates

GBP – USD       @      17:00                   1.5824 GBP - EURO     @      17:00                   1.2450

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