The latest ups and downs on the stock market

Aviva’s stock has been on a roller-coaster ride following the news of RSA’s failed £5bn bid to buy its general insurance arm. The stock jumped 5.5% to 387.40p on Friday when the news of the bid broke, but fell back 2.5% on Monday to close at 377.9p. A likely driver could have been Aviva management’s statement on Monday morning that shareholders would be best served by it retaining the general insurance business.

The bid has done few favours for RSA’s stock price, which fell 0.86% on Friday and a further 2.3% during Monday’s trading. This could be a reaction to the uncertainty surrounding the Aviva bid, but also the impression that RSA, contrary to previous indications, is looking for transformational acquisitions rather than steady organic growth.

Lloyd’s insurer Omega’s share price dropped sharply in Monday’s trading after the company warned of a $35m (£22.4m) half-year loss. Broker CBG’s stock price also declined after its pre-results guidance indicated its full-year 2010 result would be unlikely to meet market expectations.


Market indices Movers price 7-day Currency

FTSE 100 5,276.10 RSA 124.50 -8.86% Dollar 1.56

FTSE 250 9,774.23 Omega 88.00 -9.27% Euro 1.22

FTSE All-share 2,716.96 CBG 30.00 -11.76% Yen 134.48