BP soars 9% on scrapping dividend; FTSE moves higher

The FTSE 100 opened higher as investors responded positively to news BP has scrapped its dividend until 2011 and agreed to fund a $20bn oil spill compensation package.

At 9.20 BST, London's leading index of shares was 0.51% higher to 5,264.75. The oil giant was the morning's leading share, advancing 8.99% to 367.3p, despite the announcement it has cut dividends for the rest of the year as part of the compensation deal agreed with the US Government. Banks were also big winners. Royal Bank of Scotland rose 1.7% to 45.94p  following the sale of its Pakistan business for £34m while Lloyds TSB gained 0.92% to 56.14p. Miners were among this morning's casualties led by Petrofac, down 1.4% to £12.69. Elsewhere, Schroders NV dropped 1.31% £10.54. In ...