FTSE 100 close: 10 days in the sun for Footsie

By Adrian Lowery
Updated: 12:21 EDT, 24 July 2009

The FTSE 100 index took more fanfares today as Vodafone's lead took it to a full two weeks of advances, even after a downbeat open for the Dow limited its gains.

The FTSE 100 index closed 16.8 points up at 4,576.6, its highest level since January. The Footsie is up 31% since a six-year low was set on 3 March and has risen 11% in the last ten days of trading.

Even worse-than-expected figures on UK GDP were not enough to dampen appetite for British shares. The news at 9.30am shaved just 25 points of the morning's continuing rally.

Wall Street did suffer however after weaker numbers from Amazon and Microsoft overnight failed to leave US investors with enough cheer to make it an eleventh straight day of gains.

The Dow Jones Industrial Average, although 14.5 points down at 9.053.8, has stayed above the 9,000 barrier for the first time since the start of the year.

However, the consensus among analysts on the sustainability of the bull run seems to have shifted around a little, says immy Yates, head of equities at CMC Markets.

'Traders are now talking about continued strength in these markets over the next few weeks despite the weaker economic readings and if this the case it may not be long until we are trading at fresh highs for 2009,' he said.

Vodafone was the second-strongest riser and the biggest driver behind the index: shares rose 3% or 3.35p to 120.25p after the world's largest mobile phone firm reported a slight decline in organic sales that was in line with market expectations. First-quarter revenues rose 9.3% to £10.74bn, causing it to reaffirm earlier guidance for its full-year results.

Banks and miners again dominated the risers, with Royal Bank of Scotland and Lloyds Banking Group making gains following reports they had submitted restructuring plans to the EU. Both banks rose around 2%, with RBS up 0.775p at 42p while Lloyds added 1.84p to 77.99p.

Among the miners Lonmin led the way with an almost 4% rise - up 45p at 1,243p - followed by Antofagasta up 18.5p at 750p.

United Utilities, Britain's largest water company, also posted sales in line with expectations, and it crept 3p lower to 476.25p.

The other water companies remained under pressure after yesterday's price cut demands from regulator Ofwat. Shares in South West Water owner Pennon were worst hit, down 24.25p to 466.25p, after it was downgraded by HSBC to 'neutral' from 'overweight'. Severn Trent fell 18p to 1014p.

National Express shares were near the top of the FTSE 250 Index risers' board after the Financial Times said Spain's Cosmen family, which owns 18.5% of the company, was working with buy-out firm CVC on the potential takeover deal. Shares rose 15.26p to 339.26p, a gain of 5%.

Directories firm Yell set the pace, up almost 9% or 2.75p to 31p, after yesterday's better than expected trading update.

Shares in Atlantic Global stayed at 23p after the provider of resource management software reports a first-half pre-tax loss of approximately £150,000, with broker Daniel Stewart cutting its earnings forecasts.

The group says turnover was hit by the economic slowdown and the slower than expected take-up of the OnDemand product. Daniel Stewart lowered its 2009 pre-tax profit forecast to £318,000 from £468,000, factoring in a second-half recovery in line with company expectations and cuts its target price to 32p from 36p, but maintains a 'buy' rating.