#AceFinanceNews – #FTSE Market Report:June.11: LONDON (Reuters) – Gains in Royal Bank of Scotland shares bolstered Britain’s top equity index on Thursday on news it would be returned to private hands sooner than expected, while shares in Royal Mail fell after the government sold half its stake at a discount.
The blue-chip FTSE 100 index was up 17.70 points, or 0.3 percent at 6,847.97 by 1120 GMT, still 3.6 percent below a record high hit in April and 4.2 percent up on the year.
Royal Mail was the biggest FTSE loser, down 4 percent after the British government said it would sell half of its remaining stake in the company, leaving it with about 15 percent of the postal service.
The stock fell to 496 pence from 516.5 pence after the government sold the shares at 500p each, a discount to Wednesday’s close.
Royal Bank of Scotland gained 1.6 percent after finance minister George Osborne said Britain would start selling its 32 billion pound ($49.51 billion) stake in the bank. The sale plan represents a milestone in terms of RBS’s recovery from the financial crisis but also means Osborne has given up on his original intention to sell the shares for a profit.
Ace Worldwide News Group