Boost for BT but FTSE down overall

BT shareholders were given a much-needed boost today after shares surged 5% in the wake of an upgrade from a leading investment bank.

Problems at BT’s global services arm have left the stock near record lows, but Bank of America thinks now is the time for investors to return after raising its price target and issuing a buy note.

The stock was 4.8p higher at 97.8p by mid-morning, but the wider market struggled for direction after dropping 4.8 points to 4457.1.

BT was joined on the risers board by pharmaceuticals stocks after UBS raised its target price on AstraZeneca. The company’s shares rose 4% or 96p to 2613p, while rival GlaxoSmithKline added 50.5p to 1109p.

One of the most closely watched stocks of the session was Barclays after US investment giant BlackRock announced it was buying Barclays Global Investors (BGI) for a total of $13.5bn (€9.6bn).

Barclays said it will be one of the world’s best capitalised banks, but with no competing offer likely to emerge shares retreated 9.25p to 295.25p.

In contrast, Lloyds Banking Group rose a penny to 67.7p and Royal Bank of Scotland added 1.4p to 41.1p.

As well as the fall for Barclays, miners featured on the fallers board after a strong run for the sector earlier in the week.

Vedanta Resources led the way with a drop of 7% or 125p to 1622p, while Fresnillo shed 34p to 651p and Antofagasta fell 32.5p to 671p.

Back on the risers board, shares in advertising and marketing giant WPP surged 3% after Goldman Sachs said sales could be nearing a trough. It was enough for the stock to rally 13.5p to 439p, a gain of 3%.

As well as BT, fellow telecoms firm Cable & Wireless added 3p to 130.6p and Vodafone rose 1.7p to 116.45p.