RAMSEY CROOKALL

17th  August

Evening Report

The FTSE 100 closed down 0.5%. Financial stocks fell as investors worried about a potential European financial transaction tax announced late today. Barclays closed down 4.2%, ICAP down 3.7%, Hargreaves Lansdown 3.2% lower and London Stock Exchange finishes down 2.8%. On the upside, steadily rising metal prices helped miners. On Thursday, UK retail sales data will be closed eyedin early trading.

Among the fallers today was brewing giant SABMiller, the company has bid £6bn for Fosters, after the Australian brewer's directors showed no interest in discussing a takeover. SABMiller is offering A$4.90 per Foster's share, though the offer price will be reduced by an amount equivalent to any dividend or distribution paid by Foster's subsequent to the bid announcement.

Infrastructure group Balfour Beatty closed 5%  lower after it said it expects markets to remain tough in the short term as it posted a meagre rise in underlying pre-tax profits and revenues for the half year to 1 July. Underlying pre-tax profits rose to £138m from £133m, while revenues edged up to £5.222bn from £5.16bn.

Kazakh mining giant ENRC pointed to continued growth in China, which neighbours the central Asian country, and the recovery elsewhere as it posted a sharp rise in profits and revenues in the first half year. Revenues were up by 32% from the same period the previous year at $4.011m while EBITDA (earnings before interest, depreciation and amortisation) climbed by 33% to $1.927bn.

Educational publisher Pearson, was one of today's heaviest fallers in the FTSE 100, despite saying it is to receive a belated $115m cash windfall from the sale of its Government Solutions business back in 2006. The business has subsequently been sold on again to General Dynamics.

THE FTSE 100 closed                      Down          26        @       5331

THE DOW JONES at 16:40                   Up            33         @       11436                        NASDAQ COM at 16:40                      Up            31         @       2526                              Commodities Spot Gold $/Oz           $1782 Brent Crude Oil          $110.80 September Delivery   

Exchange Rates GBP – USD           1.6548 GBP - EURO          1.1467