Vodafone shares power ahead on strong results

MOBILE phone giant Vodafone charged to its highest close for nearly six months today after half-year results beat expectations.

The shares soared 13% and a number of other telecom stocks also moved ahead as hopes grew that some of the gloom surrounding the sector could at last be lifting.

The gains also supported the wider market and, along with a strong start in the US, meant the FTSE 100 Index was able to close up 69.4 points at 4085.0.

Both the Dow Jones Industrial Average and tech-laden Nasdaq were trading higher by London’s close, despite increased fears about a possible war in Iraq. But the main news of the day was Vodafone, one of the City’s biggest stocks.

It posted a 41% jump in underlying profits, to £4.25 billion, and chief executive Sir Christopher Gent said the group had proved the doubters wrong after cashing in on higher phone usage and increased text messaging. The shares climbed 12.5p to 111p. The last time the stock closed higher was at the end of May.

Other telecom firms following its lead included mmO2, which gained 3.25p at 54p, and BT, which added 6.75p at 201.75p. The biggest blue-chip risers were Vodafone, up 12.5p at 111p, Invensys, up 4p at 62.5p, mmO2, up 3.25p at 54p and Bunzl, up 27p at 465p. The heaviest fallers were Alliance UniChem, down 16.5p at 461.5p, Rentokil Initial, down 7p at 203p, Legal & General, down 3.5p at 108p and Rolls-Royce, down 2.75p at 111p.