RAMSEY CROOKALL

23 SEPTEMBER 2011

Evening Report

The FTSE 100 index pared early losses , closing flat in volatile action. Gains for London-listed banks such as Lloyds Banking Group PLC and HSBC Holdings PLC  helped the market recover earlier loses with those the shares up 4% and 1%. Heavyweight mobile-phone operator Vodafone Group PLC recovered from earlier losses to rise 1.5%.

British Gas owner Centrica's North American subsidiary, Direct Energy, has agreed to acquire the Texas-based energy retailer First Choice Power for $270m (£175m) in cash, plus additional working capital. Centrica closed up 1.54%.

Halfords  headed the FTSE 250 leaderboard after Oriel Securities changed its rating on the firm to "buy". The broker made the move despite revealing that the firm's trading update is likely to "breed lower consensus forecasts". In Oriel's view, however, the Halfords dividend is secure, which would preserve the juicy 7.4% dividend yield on the stock.

New World Resources took a hit after JPMorgan Chase & Co.cut its price estimate by 44% and cut the projection for its London-traded shares from 940p to 530p. The broker maintained its "neutral" recommendation on the stock.

THE FTSE 100 closed                    Up              25       @         5066

THE DOW JONES at 16:40                 Up              4        @         10738                    NASDAQ COM at 16:40                   Up              30       @          2485               Commodities Spot Gold $/Oz           $1671 Brent Crude Oil          $104.98 September Delivery   

Exchange Rates GBP – USD           1.5472 GBP - EURO         1.1436