Tech and telecoms stocks sparked into life

Blue-chip stocks are edging higher in London as a strong finish in the US and upbeat figures from engine-maker Rolls-Royce lift spirits.

The lack of gloomy data has sparked the majority of tech and telecoms stock into life, and pushed the Footsie index of 100 leading blue-chips 12.2 points higher at 5420.9.

Earlier, the Dow Jones Industrial Average in the US reversed the previous day's losses to post a 1% rise, while investors also raided the Nasdaq Composite in search of bargains.

Corporate news in London centred around Rolls-Royce's interim results. The group posted a surprise profits warning last August, but it has now eased investors' nerves with a record order book and a confident outlook.

Shares in Rolls-Royce initially rose by 3.7% or 8p to 224p, but has since fallen back to stand ahead just 1½p at 217½p.

Elsewhere, Vodafone is gaining ground with a rise of 4¾p to 135¼p, while rival BT has picked up 5¾p to reach 445¼p.

Other telecoms on the way up include Cable & Wireless, ahead 6p at 326p; and Energis, up 1p at 77½p.

On the downside, BP and Shell have fallen by 5p to 597p and 4½p to 560½p respectively.

Banks are also feeling the heat, with Lloyds TSB off 5p at 737p; Barclays 21p lower at £22.51; and Alliance & Leicester down 8p at 821p.

Among other companies reporting results, life assurance group and estate agent Countrywide Assured has seen its share price rise by 4% or 5p to 124½p after it reported a 30% increase in pre-tax profits.