Market round-up: Royal Mail shares sink on FTSE 100 after anti-competition call from Ofcom

The FTSE 100 ended the day on 28 July only slightly better than it began despite mergers and new economic growth data. In the second quarter of the fiscal year, the UK GDP grew 0.7%. The numbers mean the country has finally returned to its per capita GDP peak before the financial crisis seven years ago.

"RSA Insurance saw a double-digit increase in its share price after cash-rich Zurich Insurance confirmed that it is considering a bid which could top £5.5bn," said AJ Bell investment director Russ Mould. The company's shares shot up +18.43%.

"The impending introduction of new European solvency rules has prompted insurers to consider tie-ups to improve their capital bases and if Zurich decides to go ahead with a move for RSA, it is unlikely that this will be the last."

The market closed out the day up 0.77% at 6,555.28p. Royal Mail was one of the biggest fallers, finishing the day down -3.43% after it was learned the once public company's price plan breached competition law according to regulator Ofcom.