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FTSE100 ends higher though insurers plunge

Last updated: 13:11 28 Mar 2014 EDT, First published: 14:11 28 Mar 2014 EDT

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Britain's blue chip index finished in the green, despite UK insurers taking a pounding.

Four of the big names accounted for the top five biggest laggards on Footsie as investors took flight on fears of impending investigation from the City Watchdog.

The FCA (Financial Conduct Authority) review is due to kick off in the summer and will look at around 30 million policies dating back to the 1970s, including pensions, endowments and bonds.

It will hone in on policies, which penalise those who want to exit and investment plans, which customers rarely check for themselves.

More than £3bn was wiped off the value of the insurance sector in trading today.

Resolution (LON:RSL) was the biggest loser, dropping over 8%, Aviva (LON:AV.) fell 2.75%L&G (LON:LGEN) dropped 3.48&  and Prudential (LON:PRU) lost 2.6%. All had recovered somewhat from eralier losses.

Meanwhile, FTSE100 as a whole ended up 27.26 at 6,615.

The biggest gainer was Smith & Nephew (LON:SN.) which gained 2.39% as there was broker talk on a possible profitable break up of the group into three - though management have not suggested this move.

FTSE AIM All share added 2.12 to go to 850.74, while FTSE AIM 100 added almost 16 at 3824.11.

In the small caps, Strategic Natural Resources (LON:SN.P) shot up nearly 46% on Friday after it said it hopes to announce the successful conclusion of talks with a strategic investor “in the near term”.

However it added: “In the event that the company is unable to successfully conclude the funding discussions referred to above then the board of SNR will have to take steps to protect the interests of the company's creditors.”

The statement followed an announcement on Thursday that it had received a court order freezing the company’s interest in the Elitheni coal mine.

Kromek (LON:KMK) was a notable faller after a warning it will make a loss this year. It joined AIM just five months ago.

DiamondCorp (LON:DCP) shares gained ground as it said the Lace mine’s underground development in on track and within budget, and raised £2.1mln in an oversubscribed share placing.

Beowulf Mining (LON:BEM) was also a notable gainer, adding 16.44%.

Meanwhile, shares in EMED Mining (LON:EMED, TSE:EMD) raced upwards late Friday as its planned re-start of the Rio Tinto mine took a significant step.

The minister of "environment and spatial planning" today announced the signing of what's called the Unified Environmental Authorisation (AAU) for the mine.

Shares surged almost 12% in late trading after the firm's brief statement to the market.

EMED said it noted the latest announcement but was "awaiting formal receipt of the AAU and will make a further announcement once this has been received by the company".

Receipt of the AAU clears the way to the granting of ‘administrative standing’ – which effectively gives EMED the green light to start redevelopment work, which is why the latest update is significant.

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