Tech and telecom stock enjoy rare boost

The London market is in positive territory as tech and telecom stocks enjoy a rare bout of buoyant trading.

By lunchtime, the FTSE 100 Index was up 18.6 points at 5330.7. Investors are digesting news from Marconi and the merger between US computer company Hewlett-Packard and Compaq.

The move sparked hopes of more consolidation in the computer sector and US markets are set to open higher this afternoon, providing a further lift in London.

New economy stocks on the up included Colt Telecom, 12½p higher at 201p and once again making progress after a strong session yesterday, Energis, up 2¾p at 76¼p and Vodafone, 4¼p ahead at 140p.

Also on the up was computer services firm Logica, rising 24½p at 736½p ahead of its interim results tomorrow, while rival CMG gained 6½p at 256½p.

Marconi rival Spirent was ahead, adding 4p to 128p.

The gains were reflected on the FTSE 250 Index with semiconductor company Parthus Technologies up 5%, or 1¾p to 37¾p, rival IQE up 18p at 163p and computer services group Guardian iT up 25p to 300p.

But back in the main index, it appeared that shaken blue chip Marconi's morning rally had come to a close.

The company, which announced a further 2,000 job cuts today, said it expected to make an operational loss this year, rather than the group's previous forecast of breakeven.

Marconi's shares rallied during morning trading. By lunchtime, however, the group was heading south once more, slipping just under a penny to hit 53¾p.