Tech stocks lead Footsie revival

The Footsie index of 100 leading blue-chip shares is up 41.8 points at lunchtime to stand at 5851.4, with new economy stocks leading the way.

Trading on the London Stock Exchange has been buoyed by speculation that Marconi is being eyed up as a possible £12bn bid target by US computer networking giant Cisco Systems. Shares in the UK telecoms equipment firm are up 6% or 19p to 357p, placing it atop the Footsie 100 leaders board.

Other technology and telecoms stocks on the increase include computer services group Logica, up 47p to 937p; chip designer ARM Holdings, up 9p to 350p; and software group Misys, ahead 24½p to 576p.

Media stocks are also making headway as a result of gains made in the US at the end of last week, with Granada up 6p to 176p; and Reuters up 20p to £10.

Shell and BP Amoco are up 9½p to 627½ and 6½p to 638p respectively following news that Iraq has decided to stop oil sales after the United Nations extended its oil-for-food programme by only a month. The oil giants' involvement in a £10.6 billion deal to develop a Saudi Arabian gas field bigger than Ireland has also provided a boost.

Those losing ground include Great Universal Stores, which reports its final results tomorrow. Shares in the group, which owns catalogue chain Argos, dropped 2p to 588p on fears it may decide to delay the flotation of upmarket fashion house Burberry.

Broadcaster BSkyB has fallen 14½p to 702p after press reports that key shareholder Vivendi Universal may sell its stake in the group to institutional investors.

Airports operator BAA is down 1p to 619p despite posting a healthy 15% jump in full-year profits. The group, which runs seven UK airports including Heathrow, Gatwick and Stansted, has warned that the foot-and-mouth crisis may hit passenger numbers until the autumn.

Meanwhile, Uniq has seen its share price fall by 7p to 200p after seeing its full-year profits wiped out by a downturn at its pig processing arm Malton Foods, which dived into the red after being hurt by the impact of foot-and-mouth disease and swine fever.