Blue-chips race ahead as telecoms boost sentiment

STRONG gains in the telecom and finance sectors helped lift the London market yesterday as blue-chip shares raced ahead.

As expected, Wall Street opened slightly lower as investors took profits after last night’s 5% hike on the Dow Jones Industrial Average. But although the FTSE 100 Index was unable to hold an early 128-point surge, trading remained strong throughout the session. It meant the top flight was able to break past the 3900 mark and close up 107.8 points at 3905.2, its second consecutive upbeat finish. Telecoms were some of the biggest gainers. The sector took a pounding earlier this week but yesterday mobile phone giant Vodafone put on 6p at 90p, rival mmO2 added 2.75p at 47p, BT gained 4.5p at 173.25p and Cable & Wireless was 3.75p heavier at 128.75p.

The banking sector also helped keep the market ahead, gaining on speculation the US Federal Reserve may cut interest rates. Royal Bank of Scotland was up 67p to £13.02, Barclays rose 18.75p to 416.25p, HBOS added 8p at 628.5p and HSBC climbed 11p to 662p. Among insurers, Aviva was up 20.5p to 393.5p, Legal & General rose 6p to 93p while Royal & Sun Alliance added 4.75p at 101.75p. The biggest risers were Vodafone, up 6p at 90p, Legal & General, up 6p at 93p, AstraZeneca, up 130p at £21.30 and mmO2, up 2.75p at 47p. The heaviest fallers were Next, off 48.5p at 880p, Scottish & Newcastle, off 21p at 525p, Dixons, off 6p at 168p and Kingfisher, off 7p at 201.75p.