Footsie breaches 5,500 barrier again

The Footsie index of 100 leading stocks has surged back through the 5,500 barrier as tech and telecoms shares rise following overnight gains on the US Nasdaq.

By mid-morning, the Footsie index is up 81.1 points at 5512.2.

Vodafone is among the telecoms risers, posting a rise of 5% or 7p to 142½p; while Cable & Wireless is up 17½p to 350p; BT has gained 9½p at 468p; and Telewest Communications has edged up 2p to 76½p.

Telecoms equipment group Energis has surged by 9% or 8p to 102p, but Marconi has slumped by 9% or 7½p to a new low of 73½p after a broker downgraded its share price target.

Tech risers include computer services group Logica, up 44p at 715p; CMG, up 10¼p at 247¾p; and chip designer ARM Holdings, up 16¾p at 309¼p.

Software firms Sage and Misys are also ahead, rising by 7½p to 216½p and by 11½p to 351½p respectively.

Banks are lending their weight to the market, with Barclays rising 36p to £22.36; HSBC 16½p ahead at 842½p; Royal Bank of Scotland 30p ahead at £17.48; and Lloyds TSB jumping by 9p to 734p.

Outside the Footsie, airports operator TBI is up by 50% or 29¾p to 89½p after French group Vinci said it was considering making a 90p-a-share bid.

Alfred McAlpine has jumped by 5% or 20½p to 431½p after clinching a £461m deal to sell its house building business to rival George Wimpey, whose share price has reversed an earlier fall and is now up 5½p at 202p.

Shares in recruitment firm Michael Page are up by 4% or 4½p to 132p, despite it reporting half-year profits slightly below hopes and saying the uncertain economic outlook made it particularly difficult to forecast business levels.