Insurance stocks rose sharply today after a £2billion deal in the financial services sector helped the London market weather the economic gloom.
The transaction involved the Anglo-South African firm Old Mutual, which closed 11% or 12.7p higher at 123.7p after it announced plans to sell its Nordic long-term savings and banking arm to Sweden’s Skandia Liv.
The deal activity was a factor in the FTSE 100 Index bouncing back from the heavy losses of the previous session to finish up 34.1 points at 5,400.9.
Other insurers to benefit from the impact of the deal included Standard Life, which lifted 4.7p to 198.1p, while Prudential cheered 14p to 614.5p and Legal & General added 2.65p to 101.5p.
The worse-than-expected UK retail sales for November failed to dent confidence in retailers ahead of the key Christmas trading period. Next was up 18p at £26.03, while B&Q owner Kingfisher was 3p higher at 240.2p.
In corporate results, Sports Direct posted a 2% rise in half-year earnings to £139.2million, but with no half-year dividend shares fell 9.5p to 190p.
Suit specialist Moss Bros was 0.25p higher at 32.75p after maintaining its recent trading improvement with a 10.5% rise in like-for-like sales.
The biggest FTSE 100 Index risers included Weir Group ahead 72p at £19.40, Hargreaves Lansdown up 13.5p at 434.9p and Investec ahead 9.5p at 338p.
The biggest fallers were Resolution down 5.2p at 245.7p, Cairn Energy off 4.3p at 264.6p, Tullow Oil down 12p at £13.16 and BG Group off 11.5p at 1,316.5p.
Alan Cockburn, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that FirstGroup added 2.37% at 324.4p.
He also said fallers included STV Group which dropped 2.92% to 83p, AG Barr, down 2.63% to 1,192.5p and Melrose Resources which fell 0.58% to 268p.