RAMSEY CROOKALL

5th September 

Evening Report

The FTSE 100 closed down 3.5%  as it followed European bourses lower. In London, banking stocks remained the leading decliners with investors spooked both by the prospect of another recession in the US and on news the US government is suing a number of banks. Barclays closed down 7% and Royal Bank of Scotland  down 12%. Gold miner Randgold Resources is the sole gainer on the index, adding 0.8% as investors flee to safe-haven assets.

FTSE 100 mining giants Rio Tinto and Anglo American dropped after announcing that they are to offload their respective interests in South Africa-focused copper miner Palabora Mining Company. Energy services company Hunting opened lower after completing the acquisition of the business and assets of W L Doffing, a machine services provider, for a cash consideration of $20.8m (£12.8m). The stock is trading down 2.4%.

Shares in Botswana Diamonds fell by over a tenth on Monday after the firm revealed disappointments in its operations in the Orapa Region, Botswana. Bulk sampling on AK8 on the PL04/2002 licence showed that diamond values are too low to make the kimberlite commercial at the current grade.

THE FTSE 100 closed                        Down       189        @       5102

THE DOW JONES closed                      Down       253        @       11240                        NASDAQ COM closed                          Down       65         @       2480               Commodities Spot Gold $/Oz           $1900 Brent Crude Oil          $110.68 September Delivery     Exchange Rates GBP – USD           1.6096 GBP - EURO          1.1415