Shares in UK life insurance and asset management group Resolution dropped sharply after the group cancelled the cash return of 250m pounds set for the first half of 2012 due to ‘uncertainty’ in the markets.

The group said that the decision was based on its estimated capital position as at the end of June after working out the expected future capital requirements of Friends Life Group ‘against a backdrop of heightened investment, economic and regulatory uncertainty.’

Telecoms group Vodafone also declined after reported revenues fell by 7.7% (up 1% on an organic basis) in the first quarter with unfavourable foreign exchange movements in Europe providing a drag.

Meanwhile, United Utilities rose higher as investors abandoned riskier sectors such as miners and financials. Evraz, Kazakhyms, Barclays and RBS were all heavy fallers by late afternoon. This came amid concerns Spain may be forced into requiring a full bailout after the government gave the thumbs up for the EUR100bn aid package for Europe’s fourth largest economy’s banking sector, as passed by the EU a few weeks ago.

FTSE 100 – Risers
Rexam (REX) 444.40p +1.11%
ARM Holdings (ARM) 496.70p +1.04%
United Utilities Group (UU.) 697.00p +0.94%
IMI (IMI) 814.50p +0.87%
Weir Group (WEIR) 1,538.00p +0.85%
Meggitt (MGGT) 403.90p +0.50%
British Sky Broadcasting Group (BSY) 696.50p +0.43%
Royal Dutch Shell ‘A’ (RDSA) 2,221.00p +0.36%
Johnson Matthey (JMAT) 2,211.00p +0.32%
Morrison (Wm) Supermarkets (MRW) 275.10p +0.29%

FTSE 100 – Fallers
Resolution Ltd. (RSL) 211.90p -7.02%
Evraz (EVR) 239.60p -4.31%
Aberdeen Asset Management (ADN) 250.20p -3.36%
International Consolidated Airlines Group SA (CDI) (IAG) 154.90p -3.25%
Kingfisher (KGF) 264.30p -2.69%
Kazakhmys (KAZ) 705.00p -2.56%
Schroders (SDR) 1,339.00p -2.48%
Barclays (BARC) 160.30p -2.40%
Royal Bank of Scotland Group (RBS) 207.30p -2.36%
GKN (GKN) 210.60p -2.32%

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