Blue chip shares were on the front foot on Wednesday (24 May), amid news that a settlement of a run-running dispute between the Royal Bank of Scotland (RBS) and its shareholders is in sight.

The High Court case has adjourned for a month to allow further talks, with both parties "hopeful" of an agreement worth around £200m ($259.5m). The bank's shares were 2% higher.

The FTSE 100 Index lifted 21.3 points to 7506.6 in afternoon trading, with investors cheered that the bank looks set to clear yet another legacy hurdle that prevents it from moving into profit. The FTSE 250 Index rose 36 points to 19956.

RBS is also yet to settle with the US Department of Justice over claims it mis-sold toxic residential mortgage-backed securities, and is waiting to hear from the European Union on its counter-proposals to selling its Williams & Glyn unit.

Shore Capital Gary Greenwood said: "Management remains hopeful of resolving these issues during the current financial year and so enabling the group to return to statutory profitability in 2018 - for the first time in over a decade - but timing remains largely outside of its control."

However, shares in the 72% state owned bank were up 5.1p to 270p.

The biggest afternoon risers in the FTSE 100 Index were EasyJet (+43p to 1344p), TUI (+33p to 1174p), Severn Trent (+70p to 2561p), Royal Bank of Scotland (+5.1p to 270p) and BAE Systems (+11p to 652.5p).

The biggest afternoon fallers in the FTSE 100 Index were Kingfisher (-24.5p to 334.7p), Mediclinic International (-44.5p to 824.5p), Randgold Resources (-85p to 7155p), Fresnillo (-14p to 1568p) and Rolls-Royce (-7.5p to 854.5p).

The biggest afternoon risers in the FTSE 250 Index were Dixons Carphone (+17.3p to 344p), SIG (+6.2p to 151.2p), Cranswick (+107p to 3063p), ZPG (+11.4p to 369.5p) and Rank Group (+6.5p to 216.5p).

The biggest afternoon fallers in the FTSE 250 Index were Acacia Mining (-63.1p to 370.7p), Softcat (-38p to 419.6p), Petrofac (-24.5p to 607.5p), Wood Group (-26p to 734.5p) and Big Yellow Group (-27p to 767.5p).