September 20, 2010 / 11:30 AM / 10 years ago

STOCKS NEWS EUROPE- Resolution weak on blue chip debut

Shares in Resolution RSL.L shed 1.2 percent as the insurance buy-out group makes its debut on the FTSE 100 .FTSE index following promotion from the mid caps .FTMC after the latest quarterly indexes review, with Galvan Research seeing an opportunity to go short of the stock.

“The recent premium in the (Resolution) share price associated with FTSE 100 entry and the AXA acquisition are now well and truly factored in, and with no other positive drivers for now, we expect a period of share price consolidation,” Andrew Gibson, head of research at Galvan, says.

“Shares in Resolution have delivered a rolling top formation on chart since the end of July through 250 pence and while below this level and 10-day moving average, the downside for the stock is seen as the 2 month support level below 230 pence,” Gibson adds.

Engineers Weir Group (WEIR.L) and Tomkins TOMK.L also fall as they make tbheir blue chip debuts, down 1.4 and 0.4 percent respectively.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net

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