Vodafone results inspire FTSE

Telecoms giant Vodafone saw shares soar to a six-year high today, helping lift the wider London market by 1.5%.

The group advanced 6% after better-than-expected third quarter figures from rival France Telecom and news of a deal with Carphone Warehouse inspired investors.

Heavily-weighted Vodafone provided a boost to the FTSE 100 Index, which closed up 94.3 points at 6576.3.

The Footsie also benefited from hopes of a cut in US interest rates, which had seen a recovery on Wall Street last night, providing continuing support for the London market throughout the session.

Vodafone's new partner Carphone Warehouse also gained 13p to 349.25p on vague bid speculation after announcing the agreement with Vodafone to use part of its network yesterday. Vodafone meanwhile rose 11.5p to 189.7p.

The share gains offset falls among housebuilders and mortgage lenders after downbeat mortgage lending figures.

Data from the British Bankers' Association showing a 27% fall in home purchase approvals last month - the worst September performance for seven years - put pressure on top-flight housebuilders.

Barratt Developments fell 12p to 650p while mortgage lender Alliance & Leicester also suffered, off 22.5p at 729.5p.

InterContinental Hotels was also a strong riser as the firm gained from a broker upgrade after unveiling plans to relaunch its Holiday Inn brand. The stock was nearly 6% higher, or 61p ahead at 1095p.

Other leading stocks continued to benefit from upbeat corporate news as Argos owner Home Retail Group made progress on analyst upgrades following better-than-expected results in the previous session. Shares were ahead 19.75p at 412.75p.

Among insurers, Norwich Union business Aviva gained nearly 3% after a third quarter trading update at the top end of market expectations. Shares lifted 18p to 722p, while sector rivals Prudential and Legal & General also benefited with gains of 34.5p and 1.2p to 779p and 131.7p respectively.

Resolution meanwhile rose 3p to 709.5p after Standard Life said it was in "advanced discussions" over a possible recommended offer valuing the firm at around £4.9 billion.

Resolution advanced 3p to 709.5p but concerns over Standard's approach saw the latest suitor fall 3.5p to 276.25p.

Capita was the leading Footsie faller after news from Transport for London that it has lost the £60m (€86m) a year congestion charging and low emission zone contract from 2009 to IBM.

The firm shed 6%, or 41p to 700p.

GlaxoSmithKline shares were back under pressure today after analysts downgraded their ratings for the drugs giant after third quarter results.

City experts expressed disappointment at growth for some of the company's key products, sending the shares 9p lower to 1240p.

The biggest Footsie risers were Vodafone up 11.5p at 189.7p, InterContinental Hotels ahead 61p at 1095p, Home Retail Group up 19.75p at 412.75p and Old Mutual up 8.5p at 178.6p.

The biggest Footsie fallers were Capita off 41p at 700p, Alliance & Leicester down 22.5p at 729.5p, Barratt Developments down 12p at 650p and Centrica off 4.75p at 372.5p.