RAMSEY CROOKALL

22nd   September 2011

EVENING REPORT

The FTSE 100 closed down 4.7% with all the index's components ending in the red. The negative tone struck by the Federal Reserve over the US economic outlook prompted investor caution. Meanwhile, the ongoing Greek crisis and downbeat China manufacturing data didn’t help. Miners were the biggest decliners.

Copper miner Antofagasta was the biggest faller, pushed lower by the news that Pakistan's Baluchistan province has voiced objections to a mining lease for a significant copper and gold project in the country's southwest region. Antofagasta has partnered with Barrick Gold for the now delayed joint venture, which has seen them already spend $200m on purchasing the exploration licence from BHP.

Worries of a dip in demand for mineral resources hit other mining giants as well, with Vedanta, Rio Tinto, Fresnillo and Kazakhmys all headed significantly lower. No-frills airline easyJet has raised full-year profits guidance, paving the way for a bumper special dividend, a move which sent the share price to the top of the FTSE 250 leaderboard. It wasn't all good news, however, as the firm warned its 2012 fuel bill will increase by around £220m compared to the prior year. EasyJet bucked the trend today closing up 9%.

Royal Bank of Scotland upgraded Burberry Group to buy from hold. It added that the company's price to earnings, while at a premium relative to its peers, does not fully reflect Burberry's superior earnings growth, market share opportunities and return on invested capital of approximately 30%, which RBS adds is well ahead of the peer group average of approximately 15%. RBS retains its target price for Burberry stock at 1700p. However, the shares fell 9.8% over the day.

United Utilities confirmed it is on track to deliver its out-performance targets. First half revenue came in higher than last year, though operating expenses are also on the up. The group said it intends to accelerate some £100m of previously agreed pension deficit payments, providing a higher investment return for the group than could have been achieved through short term deposits. The defensive stock closed down 2.6%

THE FTSE 100 closed                    Down        246     @      5041

THE DOW JONES at 16:40                 Down       344      @      10780                      NASDAQ COM at 16:40                    Down         62     @      2475









              Commodities Spot Gold $/Oz           $1730 Brent Crude Oil          $106.09 September Delivery   

Exchange Rates GBP – USD           1.5364 GBP - EURO          1.1407