MARKET TALK: BP Fund Should Offer Reassurance - C Stanley

1040 GMT [Dow Jones] BP's (BP.LN) establishment of a $20B escrow account for oil spill compensation claims is a positive step forward, says Charles Stanley. It may dissipate some of the political anger that has damaged BP's debt and equity rating. Adds the size of the fund and its independent administration should give some comfort to those affected by the disaster. For investors, the staged payments should be reassuring, while the dividend suspension is prudent given the considerable uncertainty surrounding the leaking well and unknown flow rates, says Charles Stanley. Still, with uncertainty on when the well will be plugged and the longer-term implications, the brokerage keeps the stock at hold. Shares +8% at 364p. (michele.maatouk@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 17, 2010 06:40 ET (10:40 GMT)