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Royal Bank of Scotland settles dispute with shareholders for £200m

06 June 2017 16:48

Royal Bank of Scotland (RBS) finally agreed to a £200m settlement with investors who accused the bank of lying about its financial health when it handed over £12bn in 2008.

Shares in the bank fell 3% to 251.7p.

Weakness in housebuilders and banks outweighed gains in miners as the FTSE nudged lower to 7,524.

A 1.2% rise in the price of gold to $1,295 per ounce boosted shares in Mexico's second largest gold producer Fresnillo (FRES) and Randgold Resources (RRS) by 3.2% and 2.7%, respectively.

Brent crude oil slipped 0.5% to $49.21 per barrel and copper retreated 0.3% to $5,621 per tonne.

OVERSEAS MARKETS

US equities remained weak ahead of big events on Thursday, including former FBI director James Comey testifying before Congress and the UK general election.

The S&P 500 opened 0.1% in the red at 2,433.

FTSE 100 RISERS AND FALLERS

Among the blue-chips, wound care product maker ConvaTec (CTEC) was under pressure as its share price slumped 4% to 330.4p after raising £805m through a share placing.

Budget airline EasyJet (EZJ) continued to bounce back from recent share price weakness after it revealed a 9.5% jump in passenger numbers in May compared to a year ago. The stock reversed 0.4% higher to £13.39.

Remaining with airlines, British Airways commissioned an independent study to investigate the shutdown of its data centre in May that put its systems out of action and stranded 75,000 people. Shares in British Airlines' parent company International Consolidated Airlines (IAG) fell 1.3% to 584p.

FTSE 250 RISERS AND FALLERS

Online retailer AO World (AO.) failed to break out of its share price slump this year after the company unveiled wider full year losses and warned of a possible UK consumer spending slowdown. Shares in the stock reached a new low for 2017, falling 10.7% to 129.5p.

In the world of M&A, UK challenger bank Shawbrook (SHAW) rejected a final offer of £868m from private equity groups that want to acquire the business. The stock was unmoved at 338.5p.

Temporary power provider Aggreko (AGK) was 1.1% lower at 865p as investors took the news that its chief financial officer Caroline Cran was leaving after 13 years well. The company said Cran is joining Forth Ports as its new finance head.

SMALL CAP RISERS AND FALLERS

Ryanair (RYA) failed to take off despite an 11% rise in passenger numbers in May. Shares in the airline hit an all-time high last week, and fell 0.3% to 18p following the update.

In the oil and gas sector, Oilex (OEX) posted a disappointing update for its Cambay PSC project, triggering a share price crash of 33.3% to 0.1p. The company reported that no hydrocarbons were found in well C-23z, while well C-70 only produced a small amount of oil and gas.

Clontarf Energy (CLON) won Block 18 in the Equatorial Guinea 2017, which was among some of the most prospective acreage in West Africa according to director David Horgan. Shares in the oil and gas firm more than doubled on the news to 0.7p.

Investors ran for the exit after Medilink-Global UK (MEDI) announced that shareholders approved of its decision to delist from AIM, which wiped two-fifths of the company's value to 0.3p.

UK based video tech firm Forbidden Technologies (FBT) struggled to take advantage of its larger pipeline this year as it experienced a slower conversion rate than anticipated. The stock fell 17.6% to 5.1p.

Story provided by StockMarketWire.com

Related Company: CTEC

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