Telecoms companies provide FTSE boost
The FTSE 100 Index surged ahead for the third session in a row today as a multi-billion dollar telecoms deal offset concerns over military strikes in Libya and the ongoing nuclear crisis in Japan.
Markets were buoyed by news that Germany's Deutsche Telekom had agreed to sell T-Mobile USA to AT&T for US$39bn (€27.43bn), in a move that propelled UK mobile phone giant Vodafone to near the top of London's risers board.
The Footsie shrugged off worries from crises in Japan and Libya to finish up 68 points at 5786.1 - a gain of more than 1%.
This was despite reports suggesting that Japan's nuclear woes were far from over, while the World Bank estimated the devastating earthquake and tsunami has caused $235bn (€165.3bn) of damage and will take five years to rebuild.
Oil prices jumped once more after a second night of allied strikes in Libya, where Colonel Gaddafi vowed to fight a "long war". London Brent crude rose 1% to more than $115 (€80.88) a barrel.
The pound was up against the dollar, which came under pressure from high commodity prices. It was also higher against a buoyant euro, which has strengthened on speculation that this week's European Union summit will bring about further positive developments regarding the sovereign debt crisis. Sterling rose to $1.63 and €1.15.
Banks and commodity stocks were among the biggest beneficiaries of the market's fightback from recent volatility.
Barclays rose 3% or 7.4p to 289.5p, while Fresnillo led the charge in the mining sector with a 43p gain to 1485p.
With Vodafone owning a 45% stake in operator Verizon, investors flocked to the UK firm's shares on hopes of further consolidation in the US and following the removal of another player from the market. Shares were 4% higher - up 6.1p to 176p.
A raft of hard-hitting measures from energy watchdog Ofcom to improve service among the "big six" suppliers caused barely a ripple for shares in power firms.
British Gas owner Centrica was down 0.7p to 327.8p but Scottish & Southern Energy was up one penny to 1235p, while elsewhere in the sector National Grid rose 1p to 578p.
And in its first session in the FTSE 100 Index, fund manager Hargreaves Lansdown slipped 2p to 625p.
Indian energy firm Essar Energy was the biggest faller, down 7% or 34.6p to 440.4p, with analysts raising concerns over its outlook despite strong full-year figures.
Outside the top flight, shares in serviced office provider Regus jumped 16% - 16.1p to 116.6p - despite posting a fall in full-year profits. With the FTSE 250 firm claiming it had emerged stronger from the recession, Regus raised its full-year dividend by 8% to 2.6p.
The biggest Footsie risers were Invensys up 17.1p at 353.2p, Weir Group ahead 73p at 1708p, Vodafone up 6.05p at 176p, and Rolls-Royce ahead 20p at 598.5p.
The biggest Footsie fallers were Essar Energy down 34.6p at 440.4p, BG Group off 17.5p at 1481.5p, Petrofac down 16p at 1410p, and Randgold Resources off 45p at 4490p.
