FTSE 100 movers: Asset sale shock hits RBS

2nd Nov 2009 14:38

Royal Bank Of Scotland (RBS) shares are out of favour after the part-nationalised bank issued a statement about the status of its negotiations about participation in the government asset protection scheme (APS).Broker Charles Stanley said 'the big news in this statement is that RBS will be required to make divestments "not initially contemplated".'Charles Stanley had been expecting RBS would be forced to reduce its market share in the small business area, 'possibly dispose of its RBS branded branches in England and sell off its insurance brands.' Monday's announcement suggests that the sell-off may be more extensive than that.'There is also speculation as to whether the fees for the APS and the amount of the assets to be insured will be reduced but that the first loss borne by RBS will be increased,' Charles Stanley analyst Nic Clarke notes.Upbeat news from Randgold Resources on the renamed Kibali mine lifted its share price. Randgold and its joint venture partner AngloGold Ashanti agreed on Saturday to buy an additional 20% stake in the project, formerly called Moto, for $113.6m from the Congo government. Following this transaction they will each hold 45% of the project, with state-owned OKIMO retaining 10%. Chief executive Mark Bristow said the company planned to announce a definitive timeline for the development of the project by January 2010, when it will have completed its update of the geological model. FTSE 100 - RisersRandgold Resources (RRS) 4,152.00p +4.85%Eurasian Natural Resources (ENRC) 868.50p +4.20%Lonmin (LMI) 1,515.00p +3.55%Invensys (ISYS) 291.30p +2.93%Kazakhmys (KAZ) 1,120.00p +2.85%Rio Tinto (RIO) 2,767.50p +2.77%Fresnillo (FRES) 760.50p +2.56%Vedanta Resources (VED) 2,142.00p +2.34%FTSE 100 - FallersRoyal Bank of Scotland Group (RBS) 38.01p -9.34%Legal & General Group (LGEN) 75.10p -4.33%SEGRO (SGRO) 338.60p -4.08%Lloyds Banking Group (LLOY) 84.08p -3.39%Hammerson (HMSO) 393.60p -3.10%3i Group (III) 255.80p -3.00%British Land Co (BLND) 458.80p -2.84%Liberty International (LII) 439.40p -2.59%