RAMSEY CROOKALL & CO
27th May 2011 Evening Report
The FTSE 100 closed 1.0% higher, led by miners and banks. Banking stocks rose on a
bullish recommendation by Citigroup, while mining stocks advanced on stronger base
metal prices. On Monday, both the U.S. and U.K. markets are closed for public holidays.
Next week is quiet for U.K. data, with Wednesday's PMI manufacturing reading the stand-out.
The banking sector was in demand after positive comments from Citigroup. The US bank upped
its rating on European banks to 'overweight', saying that the recent decline in share prices
provides a good entry level and the risk-to-reward ratios are more positive than three
months ago. Lloyds, RBS and HSBC closed firmly higher.
The consumer confidence index for the UK unexpectedly jumped in May. Next, Kingfisher and
Marks & Spencer all made headway on the blue chip index as a result.
Shares of luxury-goods company Burberry Group PLC closed up 2.5%, partially rebounding
from sharp losses in the prior session after an in-line set of results left some investors
disappointed. The shares have had a strong run in recent weeks.
Water company Severn Trent closed up 1.2% after it said the new regulatory period has
started well for the group with planned operational expenditure for the year below the
level allowed by the industry's watchdog, Ofwat.
THE FTSE 100 closed Up 57 @ 5938
THE DOW JONES at 4:45 Up 69 @ 12472
THE NASDAQ COMP at 4:45 Up 15 @ 2798
Exchange Rates
GBP – USD 1.6481
GBP - EURO 1.1539
Friday 27th, May 2011 05:10pm.
