RAMSEY CROOKALL & CO

5th March 2012

Evening Report

The FTSE 100 closed down 0.6%. Better-than-expected economic data from the US failed to help lift the negative mood. This hit the heavyweight miners hardest. The FTSE 350 mining index ended down 3.5 %.

Product testing group Intertek soared into top spot after its 2011 results passed with flying colours, with both revenue and profits ahead of market expectations. The firm saw revenue growth of 27% to £1,749m in 2011 from £1,374m in 2010. In constant currency terms, revenue grew 8.3% on an organic base from 2010. The market had been expecting revenue of £1,696m.

Oilfield support services titan Petrofac wasn't far behind, after saying it is growing increasingly confident of hitting its mid-term target of more than doubling its recurring 2010 group earnings by 2015, after a solid 2011.

BP was also a big riser having finally reached a settlement to resolve the majority of claims stemming from the Deepwater Horizon oil spill in April 2010. The settlement, expected to be paid from the $20bn trust which was set up following the disaster, has been reached with the Plaintiffs' Steering Committee (PSC) and will be in the region of $7.8bn.

Meanwhile, China's decision to lower its forecast for growth in 2012 knocked the miners from the off today, with Vedanta, Polymetal, Evraz, Kazakhmys and Xstrata among the worst performers. The news also dampened commodities firm Glencore despite reporting increases in revenues and earnings for 2011.

Wen Jiabao, the Premier of the world's second-largest economy, revealed that the country had reduced its gross domestic product (GDP) target for 2012 to 7.5%, the first time below the 8% level in the last eight years. The economy expanded by 9.2% in 2011.

Another big faller was Weir, which suffered a downgrade of its rating from sell to neutral by Citi. The US broker also cut its target price from 1,950p to 1,850p.

THE FTSE 100 closed Down 36 @ 5,874 THE DOW JONES @ 17:00 Down 69 @ 12,907 THE NASDAQ @ 17:00 Down 28 @ 2,947

Exchange Rates

GBP – USD @ 17:00 1.5869 GBP - EURO @ 17:00 1.1997