RAMSEY CROOKALL & CO

31st August 2011

Evening  Report

The FTSE 100 finished up 2.4%  at 5394 helped by a positive session in the U.S. as hopes for further stimulus measures gain momentum and positive data paint a rosier picture of the world's largest economy. The index is supported by a 2.4% rise in U.S. factory orders in July against a +1.9% forecast by economists. This offsets a reported slowdown in Chicago PMI to 56.5 in August from 58.8 in July, though this fall was less than expected. Traders also say strong buying activity on the last day of the month is sparked by the hefty losses suffered by equities in August. Thursday's data includes UK PMI manufacturing data at 0930 GMT.

Among today’s big gainers is bid rumour-mongers’ favourite Smith & Nephew. Latest talk has it that peer Stryker could be interested in moving for the replacement hip specialist with a possible offer of between 850p and 900p.

Property giants British Land and Land Securities fall after a two-notch downgrade to "underweight" from "overweight" on both stocks by analysts at Morgan Stanley. The broker is worried that weak economic conditions will weigh on property valuations.

In the FTSE 250, investors in Bwin.party digital entertainment are celebrating. Sales at the FTSE 250 online gaming firm formed by the merger of bwin Interactive Entertainment and PartyGaming edged lower in the six months to 30 June, but the firm has raised its stimates for synergies accrued from the merger.

Eastern Europe-focused oil group JKX Oil & Gas falls after it posted a decline in half year profit as it completes its Russian redevelopment project.

Books and stationery retailer WH Smith was firmer after it announced plans to buy-back another round of shares in 2012, following the £55m repurchased this year.

Australia-focused miner Norseman Gold fell into the red after it swung to a pre-tax loss of A$27.2m in the year ended 30 June, compared with a profit of A$1.1m the year before, as full-year gold production came in below expectations.

Shares in Pure Wafer, a provider of “wafer reclaim” services to increase semi-conductor manufacturers’ efficiencies, rose after it said growth in the semi-conductor market has been continuing.

THE FTSE 100 Closed                              Up   125      @    5,394 THE DOW JONES @ 16.45                            Up 46       @   11,605 THE NASDAQ COMP @ 16.45                          Up 9       @  2,585

Exchange Rates

GBP – USD     @ 16.45      1.6262  GBP - EURO    @ 16.45      1.1289