RAMSEY CROOKALL

25th  August

Evening Report

The FTSE 100 closed 1.4% lower with hopes for a positive statement Friday from the U.S. Federal Reserve Chairman fading. In individual stocks, Admiral leads the declines for a second day, losing 5.5%. On the plus side, Kazakhmys gains 5.2% as it impresses with 1H earnings. Looking ahead to Friday, Bernanke's speech will be preceded by GDP data releases in the U.K. and the U.S.

Drug firm Shire was one of the top decliners in the index, dropping 3.4%. The firm said Wednesday it decided not to pursue approval for its Dermagraft drug for the healing of leg ulcers after a trial didn’t meet the intended results.

Banking shares were among the biggest gainers in the FTSE, rebounding after sharp losses earlier this month. Barclays PLC rallied 6.8%, Royal Bank of Scotland Group PLC rose 5.7% and Lloyds Banking Group PLC gained 3.8%.

Kazakhstan-focused copper miner Kazakhmys is a high riser after it said underlying profits were 24% ahead in the first half and revealed details of a $250m buy-back programme. The group said the contribution from sector peer ENRC, in which it owns a 26% stake, increased significantly over the year. ENRC, too, was among the best performers in the morning.

FTSE 100 drinks giant Diageo is firmer after it posted a 2% increase in sales in the year ended 30 June, as strong growth in the emerging markets outweighed more subdued conditions in Europe. The shares closed 4.10% firmer.

THE FTSE 100 closed     Down 74 @ 5131                      THE DOW JONES at 16:45                   Down           133  @       11187                        NASDAQ COM at 16:45                      Down           22      @       2445                               Commodities

Spot Gold $/Oz           $1736 Brent Crude Oil          $110.27 September Delivery  

Exchange Rates GBP – USD           1.6278 GBP - EURO         1.1324