RAMSEY CROOKALL

30th   June 2011

Evening Report

The FTSE 100 closed 1.5% higher, boosted by news of the Greek parliament approving implementation of the government's five-year austerity plan. Buoyed too by a forecast- beating Chicago PMI reading, at 61.1 in June against expectations of 54. Looking ahead to Friday, U.K. manufacturing PMI data is due out in the morning, with  the U.S. equivalent announced in the afternoon.

Lloyds Banking Group was the biggest gainer of the day, up 9.7%, as investors reacted favorably to the bank's cost-cutting plans and its aim to return to profitability so the government can sell its 41% stake in the bank. The part-nationalised high street behemoth, is aiming to shed a further 15,000 jobs and cut its presence in foreign markets by half. The announcement today comes as part of a review of the business by its new Chief Executive, António Horta-Osório. Other notable aims include an investment programme in new IT systems. This combined with the job cuts is likely to cost £2.3bn.

BG Group, the FTSE-100 gas and oil company, rose strongly after it doubled the estimate of how much oil there might be in its Santos Basin site, 300 km off the coast of Brazil. Oil peers BP and Royal Dutch Shell are also higher.

Oilfield services firm Wood Group said today that it has seen good growth in the year to date and expects full-year numbers to be in line with expectations. Sector peer Petrofac, however, has bucked the sector trend despite saying that it is on course to deliver its target of at least 15% like-for-like net profit growth in 2011. Petrofrac closed down 3.44%.

HE FTSE 100 closed                        Up               89         @     5945

THE DOW JONES at 4:45                  Up               138         @    12400

THE NASDAQ COMP at 4:45             Up               30          @    2770   Exchange Rates GBP – USD           1.6055 GBP - EURO         1.1003