Update filed at 0920 hrs

Consolidation vehicle Resolution confirmed this morning that it was suspending its shares while it attempts to complete the buy-out of Axa’s UK life assurance business.

If successful, the company intends to merge the Axa Group businesses with Friends Provident – the life and pensions company it bought for £1.9 billion in August 2009.

Resolution said the deal would be funded through issuing £500 million of bonds to Axa, a £2 billion rights issue to existing investors and a large bank facility.

Meanwhile, Fresnillo led the early gains as the Mining sector witnessed a boom. The world’s largest silver miner was up 2.8 per cent at 1,037 pence (as at 0920 hrs), ahead of sector-mate Kazakhmys, which was up 2.7 per cent at 1,164 pence. Anglo American completed a mining top three, up 2.2 per cent at 2,634 pence.

News that the Gulf of Mexico oil disaster has already cost BP £1.1 billion did little to help the oil company recover some of the massive losses witnessed in recent weeks.

The energy giant dropped 2.4 per cent in early trading to 382.3 pence as the company’s board confirmed plans to meet to discuss deferring its second-quarter dividend.

Despite the company’s spend on the clean up, US president Barack Obama continues to pressure for further compensation for the leak, having accused the oil producer of ‘nickel and diming’ US residents while simultaneously planning to pay big dividends to investors.

Lloyds Banking Group was the second worst performer, down 1.3 per cent, followed by hedge fund company MAN Group, which was down 1.1 per cent at 243.7 pence.


Top ten trades
Friday 11 June 2010 (until noon)
Source: TD Waterhouse

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Buy
1. BP, 69.8 per cent
2. Lloyds Banking Group, 6 per cent
3. Royal Bank of Scotland, 4.9 per cent
4. Gulf Keystone, 3.6 per cent
5. Range Resources, 3.3 per cent
6. Barclays, 3.1 per cent
7. Yell Group, 2.6 per cent
8. Desire Petroleum, 2.4 per cent
9. Rockhopper Exploration, 2.2 per cent
10. African Cons., 2.2 per cent

Sell
1. BP, 41.7 per cent
2. Lloyds Banking Group, 11.3 per cent
3. Barclays, 10 per cent
4. Xstrata, 8.1 per cent
5. Royal Bank of Scotland, 5.8 per cent
6. Gulf Keystone, 5.3 per cent
7. Yell Group, 4.7 per cent
8. Vodafone Group, 4.5 per cent
9. BT Group, 4.5 per cent
10. Aviva, 4 per cent