Vodafone shares jump 10%

A strategy update by new Vodafone chief executive Vittorio Colao got a warm welcome today after shares in the mobile phone company jumped 10%.

Mr Colao promised a progressive dividend policy and stronger cash generation, offsetting disappointment at a downgrade to annual revenues guidance.

Shares rose 10.15p to 118.45p, but Vodafone’s progress represented a rare gain for the London market after the FTSE 100 Index slipped 84.7 points to 4319.2 by mid-morning.

Miners were responsible for some of the fall after giving back gains seen yesterday in the wake of the Chinese economic stimulus package. Platinum firm Lonmin was off 111p at 1076p, while Kazakhmys dipped 17p at 321p.

Banks were also under pressure, with Lloyds TSB down 15.7p at 179.3p and HSBC off 47p at 688.5p. HBOS was 6.6p lower at 101.1p after Prime Minister Gordon Brown said there were no serious bidders for the firm other than Lloyds.

A shortened risers board reflected the positive reaction to Vodafone’s half-year results announcement, with Cable & Wireless up 1.4p at 143.4p and BT Group 1.2p stronger at 113.8p ahead of its own results later in the week.