Update filed at 0915hrs

Speculation that Tui Travel’s German parent company is set to buy additional shares in its UK operation sent the travel group to the top of the gains list in this morning’s trading.

According to reports in the German media, tour operator and travel group TUI AG would like to refocus the strategy of its British business back on tourism.

The news comes as the UK-listed Tui Travel went ex-dividend. Tui UK climbed 4.2 per cent to 209.8 pence as at 0915 hrs.

Travel groups across the board moved higher in the first hour of trading with London listed companies benefitting from further merger and acquisition chatter.

Elsewhere, Mexican silver miner Fresnillo moved upwards 3.4 per cent at 1,127 pence to take the second spot on the gains list while Cable & Wireless Worldwide climbed 2.5 per cent at 68.5 pence.

ARM Holdings was the worst performer in opening trading today despite yesterday’s stellar performance. The chipmaker was among several stocks going ex-dividend.

Tullow Oil found itself as the second worst performer on the index as the dispute in Uganda drags on.

The Ugandan government is in the process of trying to take back one of its production sites alleging that Tullow has not applied for the required production licence within a set time period.

The stock was down 1.6 per cent at 1,199 pence. Burberry Group completed the bottom three, down 1.5 per cent at 838 pence.