RAMSEY CROOKALL

27th  September 2011

Evening Report

The FTSE 100 surged 3.4% in afternoon trading. Other European markets also continued to rebound sharply following International Monetary Fund meetings at the weekend, which have boosted hopes for decisive action from European authorities.

Fresnillo rose after broker Citi group raised its rating on the silver miner to “hold” from “sell”. Fresnillo wasn't the only miner on the up; Vedanta, Antofagasta, Kazakhmys, Xstrata and Eurasian Natural Resources were all in the top 10 risers after hopes were raised that the Eurozone would come to a decision which would combat the region's debt crisis. Investors are hoping that the removal of uncertainty about the future of the region would encourage industry to increase investment and production.

Banking and insurance stocks were also stronger in London. Shares in Barclays climbed 6.7% and Royal Bank of Scotland Group PLC rose 5.6%. Insurer Prudential PLC added 5.1%. Pubs group Mitchells & Butlers saw a 2.7% year-on-year increase in like-for-like sales (LFL) in the first 51 weeks of its financial year, though LFL growth has slowed to 0.5% in the 9 weeks to 17 September. Food sales at the bid target in the 9 week period were up 1.1% on a Like For Like basis, while drink sales edged up 0.2%. The group said the UK consumer environment remains challenging, while cost pressures are likely to endure into next year. The shares fell by 2.5%.

Daily Mail publisher DMGT  participated in today’s market advance. The group had warned that full year operating profit will be down from the previous year, while earnings per share will be at the lower end of market expectations due to the weak consumer advertising environment. The shares closed up 6%.

THE FTSE 100 closed                   Up         204     @         5294

THE DOW JONES at 16:40                Up         267     @         11311                    NASDAQ COMP at 16:40                  Up         54      @         2572               Commodities

Spot Gold $/Oz           $1652   UP 1.56%     Brent Crude Oil          $106.45      Up         1.59 % September Delivery   

Exchange Rates GBP – USD           1.5689 GBP - EURO          1.1521