Welcome boost for FTSE

Investors received a shot in the arm today after the FTSE 100 Index followed the lead of US markets to rise by more than 100 points.

The surprise performance included a gain of almost 4% for under-pressure mobile phone group Vodafone, while Party Poker owner PartyGaming continued its recent recovery with a leap of 8%.

Overall, the Footsie closed 2% higher, up 114.2 points at 5833.9, as the market defied expectations that traders would dwell on the Middle East conflict, as well as continued economic worries.

A strong start for US markets, following better-than-expected second quarter earnings figures, helped the mood.

Vodafone chief executive Arun Sarin received some much-needed cheer as shares in the mobile phone giant rose 4p to 115.25p on the back of a first quarter sales update.

Mr Sarin, who is expected to suffer a sizeable vote against his re-appointment tomorrow, encouraged investors by maintaining forecasts for annual organic revenues growth of between 5% and 6.5%.

Online gaming stocks stepped forward to regain some of last week’s lost ground following sharp falls in the wake of BetonSports indictments and arrest of the chief executive David Carruthers in the US.

Party Poker owner PartyGaming shot to the top of the Footsie risers board with a gain of 7.75p to 104.5p. Second flight 888 Holdings gained 6.75p to 158p and Sportingbet jumped 16% or 28p to 199p.

Among other risers, Plumb Center chain Wolseley rose 3% after announcing plans to spend £1.35 billion on DT Group, a supplier of building materials in the Nordic region. Shares were up 33p at 1112p.

Pharmaceuticals group AstraZeneca joined the charge as investors reacted to US approval for its asthma treatment Symbicort. Shares are now at a four-year high, following a rise of 121p to 3314p.

Only four stocks were in negative territory, and included BG Group with a fall of 14p to 696.5p after investors reacted to a “disappointing” result from its LNG unit in the second quarter.

Household products group Reckitt Benckiser continued its run of healthy results, but saw shares succumb to profit-taking with a decline of 20p to 2056p.

Second-tier Dairy Crest, the maker of Clover and Country Life, saw its shares gain 13p to 520p after announcing plans to acquire doorstep delivery business Express Dairies in a deal worth £33 million.

And stock in Premier Travel Inn and Pizza Hut group Whitbread lifted 6% or 72p to 1244p following speculation it is being eyed up by US hotel and property business Starwood Capital.

Elsewhere in the FTSE 250 Index, shares in the UK’s biggest commercial radio broadcaster Gcap Media tumbled 7% or 16p to 197.5p after it said revenues were likely to be 14% lower in July.

Gcap, which has 57 analogue and 100 digital stations including Capital Radio, Classic FM and Xfm, said lower spending around the World Cup may have been a factor for the heavy sales fall.

The biggest Footsie risers were PartyGaming up 7.75p at 104.5p, ICAP ahead 27p at 486p, SABmiller up 54.5p at 1029.5p and Amvescap ahead 22.25p at 481.25p.

The fallers were BG Group down 14p at 696.5p, Reckitt Benckiser off 20p at 2056p, Yell Group down 3.5p at 520p and Corus off 1.25p at 405.75p.