Tech stocks rise pulls FTSE above water

The London market has ended the day with its head above water thanks to rises in tech and telecom stocks.

By the close of trading, the FTSE-100 Index was up 15.3 points at 5357.4, after bouncing between a 55-point fall mid-morning and a 30-point gain mid-afternoon.

An upbeat start to trading in the US - where the Federal Reserve is tomorrow expected to cut interest rates by a quarter-point - also helped shares in the UK.

Tech and telecom shares were gaining, with chip designer Arm leaping 6%, up 17½p to 299p, software firm Misys up 5p at 333p and Sage rising 4¾p to 207p.

Telecoms risers included Telewest Communications, up 2p at 67p, BT, up 8¾p at 433¾p, and Vodafone ahead a marginal ½p at 128p.

A number of old economy stocks also gained, with tobacco, retailers and drinks groups ahead. Imperial Tobacco rose 23½p to 861½p, while British American Tobacco was up 21p to 591p.

Among the retailers, Marks & Spencer rose 5p to 265p while Argos-to-Burberry group GUS was 8p ahead at 590p.

Brewer Scottish & Newcastle was up 8p to 524p and Burger King-to-Guinness firm Diageo rose 10p to 710p.

However, moving in the other direction were a number of power companies. Scottish Power, which slid during the day after reports that Italian group Enel, the leading bidder to buy its Southern Water subsidiary, had pulled out of the contest, recovered to close up 2½p at 483p.

Other firms also took a knock with International Power down 11p at 267p, National Grid 13½p lower at 468½p, United Utilities off 7½p at 636p and Centrica slipping 1¼p to 225½p.