Tech stocks and financials regain ground in London

THE FTSE 100 Index ended another volatile session above the 4000 barrier today after recovering from heavy falls earlier on.

The index of leading shares closed ahead 27.4 points at 4021.9 The London market initially kicked ahead 85 points but rapidly retreated to stand 134 points down at 3860 by mid-morning. The decline reflected both fears that Wall Street shares would slide and the impact of a sharper-than-expected fall in UK inflation.

As the session wore on, London and New York stocks rallied helped in part by upbeat comments from Federal Reserve chairman Alan Greenspan. The other boost was the better performance of the Nasdaq, which helped some UK tech and telecom shares to regain lost ground.

Vodafone was up 6%, or 5p, to 91p, and mmO2 was ahead 2p to 44p.

Financial stocks were also putting back losses.

Aviva, formerly known as CGNU, rose 37p to 412p, Schroders lifted 45p to 475p and Lloyds TSB gained 28p to 558p.

Drugs giant GlaxoSmithKline closed 28p down at £11.47. Oil giant Shell fell 3p to 411p, although rival BP improved 7p to 470p. British Airways fell 5p to 147p. And British Gas group Centrica slipped 3%, off 5p to 155p.

The biggest risers were P&O Princess, up 37p at 390p, Schroders, ahead 45p at 475p, Aviva, up 37p at 412p and Amvescap, ahead 29p at 430p.

The biggest fallers were Marks & Spencer, down 15p at 334p, Safeway off 9p at 226p, Kingfisher, down 8p at 190p, and Six Continents, off 24p at 572p.