FTSE rises as Pru shares climb 5%

Prudential shares soared 5% today after the insurance giant stunned investors by announcing the departure of chief executive Jonathan Bloomer.

Amid lacklustre trading for the wider market – the FTSE 100 Index was up 7.6 points at 4918 by mid-morning – the Pru stood 23.5p higher at 501p.

The ousting of Mr Bloomer, who has been criticised for his decision to stage a rights issue last year, was seen in a positive light as investors looked for successor Mark Tucker to target growth in the profitable Asian market.

It could also revive the chances of the Pru selling its 79% stake in internet bank Egg, a mission Mr Bloomer failed to complete last year.

Elsewhere, shares in oil giant BP – the largest quoted company in the UK - fell 7.5p to 548p as investors pondered the cause and likely cost of a fatal explosion at a refinery owned by the company in Texas. Rival Shell fell 2.5p to 478.5p.

Sainsbury’s rounded off a busy week in the retail sector by announcing early signs of encouragement from its turnaround strategy.

With like-for-like sales for the fourth quarter ahead by 3.7%, Sainsbury’s shares cheered 6.75p to 293.75p.

The developments at the Pru helped lift the rest of the insurance sector with Aviva rising 2.5p to 637.5p and Friends Provident cheering 2.5p to 178.25p. Egg shares rose outside the top flight, up 7% or 8p to 115.25p.