FTSE close: Shares rally; Vodafone & Barclays up

 

17.30 (close) 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.

People walk past London's Stock Exchange

Taking stock: Shares continue their rally today

Markets were buoyed by news that Germany's Deutsche Telekom had agreed to sell T-Mobile USA to AT&T for $39bn (£24bn), 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 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 dollars 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 dollars and 1.15 euros.

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.

15.50: The Footsie has shown remarkable consistency today, rising quickly in early trading and spending almost all day in a very narrow range.

Currently, it is 74.12 points higher at 5792.25.

14.50:

US shares have followed their UK counterparts and opened higher this afternoon.

That mega-deal for T-Mobile USA (see 13.50 update) has meant that, in early trade on Wall Street, the Dow Jones is 191.5 points higher at 12.051.89.

Back in London, the FTSE 100 is 72.19 points higher at 5790.32.

13.50:

The FTSE 100 is 74.07 points higher today at 5792.2, buoyed by a huge M&A deal in the US.

In a move that propelled mobile phone giant Vodafone to the top of London's risers board, Germany's Deutsche Telekom said it had agreed to sell T-Mobile USA to AT&T for $39bn.

With Vodafone owning a 45% stake in operator rival US player Verizon, investors flocked to the UK firm's shares on hopes of further consolidation in the United States and following the removal of another player from the market.

Vodafone shares were 4% higher - up 6.9p to 176.8p.

The return of major acquisition activity gave a lift to markets after a week dogged by worries over Libya and Japan's nuclear crisis.

11.50:

The Footsie is hanging onto the gains from this morning and is 70.9 points better off approaching lunch.

Some 83 of the 100 blue chips are higher today. One of the few fallers is Centrica, the parent of British Gas, which has shed 2.1p to 326.4p as traders digest the announcement of an overhaul to the energy market which may make companies compete more fiercly on gas and electricity prices.

Rival Scottish and Southern Energy is 2p lower at 1,232p.

10.20:

Bargain hunters have moved in and given the FTSE 100 a boost, despite ongoing concerns about the strife in Libya and Japan's nuclear crisis.

The blue chip index is up 62.1 points at 5,780.2 after Asian stockmarkets surged overnight.

But reports suggested Japan's nuclear woes were far from over, while the World Bank estimated the devastating earthquake and tsunami has caused $235bn of damage which 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 to nearly $116 a barrel.

Banks and commodity stocks were among the biggest beneficiaries of the market's fight back from recent volatility.

Barclays rose 2% or 6.9p to 289p, while Fresnillo led the charge in the mining sector with a 31p gain to 1473p.

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.

Centrica was down 0.15p to 328.25p and Scottish & Southern Energy fell 1p to 1233p, while elsewhere in the sector National Grid dropped 4p to 573p.

Indian energy firm Essar Energy was the biggest faller, down 4% or 19.2p to 455.9p, with analysts raising concerns over its outlook despite strong full-year figures.