RSA Insurance (RSA) declines 1.9% to 422.9p following fears that it could receive significant claims on insurance policies following severe flooding in many parts of the UK. Initial estimates put losses at £900 million to £1.3 billion but this could top £1.5 billion if there is more heavy rain with insurers set to pick up about two-thirds of the cost.


Alaska-focused oil and gas group 88Energy (88E:AIM) gains 15.2% to 0.46p as it reports positive initial results from drilling on its Icewine project. The Icewine 1 well has reached target depth, encountering conventional oil as well as heavy gas and shale gas.


ZincOx (ZOX:AIM) is forced to hand over 90% of Korean metals recycling plant to lender Korea Zinc after failing to raise enough money to plug a gap in its finances. The shares fall 37.7% to 1.07p.


Avocet Mining’s (AVM) shares jump 11.3% to 2.51p after an arbitration verdict ruled in its favour with regards to a dispute with J&Partners, the buyer of its South East Asian mines in 2011.


Strat Aero (AERO:AIM) falls 11.3% to 5.88p after a downbeat article appeared in the Financial Times over the Christmas break. It says the drone training-to-technology group has not lived up to expectations set out at its November 2014 stock market flotation.


China New Energy (CNEL:AIM) jumps 20% to 2.4p on its first project win in North America. It will design, manufacture and install a production line system for Canadian sweetener group BioNeutra.


Elsewhere on the market, healthcare and utilities stocks are some of the biggest gainers as investors seek out defensives following a further slump in the oil price over the extended holiday weekend.


Oil and gas producers are the index's biggest laggards, shaving around 10 points off the blue chip index with BP (BP.) and Royal Dutch Shell (RDSA) down 1.7% and 0.4% respectively. Brent crude, a key benchmark oil price, lost around a dollar to $36.75 (£25.43) since the market closed on Christmas Eve.


Power utility National Grid (NG.) adds 1.7% to 951p and pharma giants AstraZeneca (AZN) and Glaxosmithkline (GSK) are among the main contributors to the FTSE 100's gains. The blue chip index is up 38.96 points to 6,293.6.


Micro cap security camera specialist IndigoVision (IND:AIM) sneaks out a profit warning as it reports second half profit failed to offset losses in the first half of the year, as previously flagged. Management says operating profit for the six months to 31 December 2015 will exceed $0.5 million (£0.3 million) compared to a $1.3 million loss in the first half. Shares trade 8.3% lower at 201p.

Food producer Dairy Crest (DCG) rises 9.5p to 689.5p on confirmation it completed the sale of its loss-making dairies operations to Germany's Muller on Boxing Day. The deal improves the Cathedral City-to-Clover maker's earnings quality, enabling it to focus on its branded cheese and spreads operations as well as the manufacture of products for the fast-growing global infant formula market.

Disclosure: William Cain, writer of the section on oil stocks, owns shares in BP.

Issue Date: 29 Dec 2015