Resolution cash return gives boost to the FTSE
BRITAIN’S top share index closed marginally higher yesterday as UK insurer Resolution’s bumper cash return helped boost insurance-related firms, while integrated oils weighed on the downside.
The market reacted positively to Resolution’s commitment to return £500m to investors.
“One would encourage share buybacks in a modest way because if a company is cancelling its shares and you remain a shareholder you would benefit from the earnings accretion,” said Paul Mumford, who manages a £25m fund at Cavendish Asset Management.
Office space supplier Regus said it would withdraw its £60m offer for MWB Business Exchange if the company’s majority shareholder and rival bidder, MWB Group Holdings, did not engage in talks by 13 June.
The FTSE 100 closed up 1.49 points at 5,864.65, having edged 0.1 per cent higher on Monday. The index fell 1.4 per cent last week, because of worries over Europe’s debt problems.