Subdued mood holding back Footsie index

The FTSE 100 Index is ahead just 5.3 points at 5258.6 at lunchtime.

Despite the subdued mood, shares in mmO2 managed are up 6% or 4¼p at 72¾p after saying full-year earnings are likely to be higher than originally expected.

MmO2's former parent company BT Group is up 4½p at 275½p; Cable & Wireless has put on ½p at 228¼p; but Vodafone has fallen back 1½p at 136½p.

Granada is down ¾p to 147½p amid reports that ITV Digital, which it owns with Carlton Communications, had failed to reduce the cost of its TV rights contract after a knockback from the Football League. Shares in Carlton are up 8p at 283p.

Former blue-chip firm Marconi is enduring a terrible session, seeing its share price fall more than 50% to just 8.8p after it warned of a further deterioration in trading and said it had failed to secure a crucial bank deal.

Other smaller stocks falling back include Marconi's rival Spirent, off 13p at 123p; Colt Telecom, 3p weaker at 54¾p; and Telewest Communications, down ½p at 14½p.

Investment bank Beeson Gregory is down 5% or 4½p at 89½p after posting a slump in full-year profits and turnover, hit hard by what it called one of the worst years in corporate history.