Media and telecom shares continue to surge

BRITAIN’S leading share index is on course for the 4,200 points level this week with attention focused on results from telecom giant BT, media firms Granada and Carlton Communications and fresh merger activity.

Dealers and analysts said the broad media rally reflected more optimism for economic revival, with the most beaten down stocks leading the way. The FTSE 100 index is up two percent this year and 25 percent above March’s eight-year low. Media and telecom shares have surged as investors have piled out of defensives and into these higher risk stocks. Shares in Granada have fallen 48 percent over the past year and Carlton some 62 percent, but both have shown a strong improvement over the last month.

Clearer guidance on the prospects for advertising are expected with Carlton and Granada’s half-year results. The two firms are also expected to address worries about their planned merger. Carlton has agreed to a takeover by Granada.