RAMSEY CROOKALL & CO

1st September 2011

Evening  Report

The FTSE 100 finished up 0.4%  at 5418 paring earlier losses after stronger- than-expected ISM manufacturing data and a drop in weekly jobless claims in the U.S. Traders say although both releases were not as bad as feared, there remains caution as they show the U.S. economy recovering at a slower rate. Additionally, below-forecast U.S. construction spending data see investors refrain from building exposure ahead of Friday's key nonfarm payrolls report.

But banking stocks help the London market, on reports that retail ring-fencing plans may be delayed by the U.K. government until after 2015 with banking giants RBS (up 8%), Lloyds (up 6%) and Barclays (up 5%).

The mining sector dropped as copper, gold and silver prices declined. Fresnillo, Lonmin and Randgold Resources were among the worst performers.

Sector peer Xstrata fell lower after its copper division - along with Goldcorp and Yamana Gold - worked out a deal that will enable their joint venture, Minera Alumbrera, the exclusive option to acquire Yamana's 100% interest in the Agua Rica project.

On the FTSE 250, Charter International was in demand after engineering firm Melrose upped the price it is willing pay for its rival by 18p per share. Charter is valued at £1.43bn at this price. Melrose saw shares fall.

Assets under administration at Hargreaves Lansdown climbed 41% in the year ended 30 June, as the wealth management firm hiked its dividend by nearly 60%. Shares were 3.5% higher.

Cruise operating giant Carnival was out of favour after announcing that it is to enter into a closed period share repurchase programme, the firm announced on Thursday.

Power systems titan Rolls-Royce was out of favour after buying US civil nuclear reactor services firm R Brooks Associates for an undisclosed sum, in an effort to grow its civil nuclear business.

Frankie & Benny’s restaurant chain operator, The Restaurant Group, served up an 8% increase in pre-tax profit and said it is confident of another year of good progress in 2011. Nevertheless, shares edged 1% lower.















THE FTSE 100 Closed                  Up  24            @    5,418

THE DOW JONES @ 16.45                Down 27           @   11,586

THE NASDAQ COMP @ 16.45              No change         @  2,579

Exchange Rates

GBP – USD     @ 16.45      1.6173 GBP - EURO    @ 16.45      1.1334