Techs and telecoms help boost FTSE

A strong performance from techs and telecom stocks has helped the FTSE-100 Index hold on to earlier gains and end the session firmly in positive territory.

The Footsie surged forward in early trading and at one point moved up by 94.5 points. But a tense start on Wall Street saw the market drop off slightly in the afternoon and it has closed ahead by 49.7 points at 6264.4.

New economy stocks, which have seen heavy losses, dominated proceedings throughout the day, helped late on by a positive trading update on the other side of the Atlantic from personal computer giant Compaq.

The Footsie risers board was heavily laden with tech stocks, with software group Autonomy leading the way, up 7%, or 157p at £24.15.

Computer services group Dimension Data also benefited from the positive sentiment, closing up 29p at 521p.

Chip designer Arm Holdings set the pace for most of the session and despite dropping back slightly, ended the day ahead by 22p at 567p.

Telecom stocks have recovered from a disappointing session on Tuesday, with Vodafone dialling up an 8.75p gain to stand at 234.75p. Colt Telecom has also ended the day well, ahead 83p at £18.83.

Elsewhere, Credit Suisse First Boston has repeated its buy rating for the avionics to medical devices group Smiths, helping the company to fly ahead 19p, to 726p. The broker has also upped its profit forecast for 2002 to £528 million from £520 million after meeting Smiths' board.

Banks have gained late on in the session, after the Bank of England's Monetary Policy Committee revealed that four of its members had voted for an interest rate cut in January, with five against, adding weight to the argument that a cut may finally be made next month.

The Bank of Scotland ended the day up 19p at 755p, while Lloyds TSB edged up marginally, rising 4p to 730p.