Confirmation RSA will not raise £600m helps index to 5000

RSA shares rose 5.5p to 133.2p on a tip from Cazenove after news RSA would not be raising £600m for a major acquisition. It led the FTSE 100 back above 5000, the Guardian reports.

Analysts at Cazenove said: “Newspaper stories in September reported that RSA might be looking to issue equity to help finance larger acquisitions, particularly in Latin America.

“Nothing has come of this and we believe that RSA's well regarded management team is very disciplined and would only look to raise equity if it could present a value enhancing deal to shareholders.”