C&W buyback lifts FTSE
Telecoms carrier Cable & Wireless led a surge in London shares today as it surprised the market with plans for a share buyback.
The London-based group shot up 7% – or 7.75p to 117.25p – as the sector also benefited from the launch of 3G services by heavyweight stock Vodafone.
This helped the FTSE 100 Index overcome a lacklustre session in New York to rise 17.7 points to 4735.4 by mid-morning.
Mining stocks were another major contributor as upbeat comments about Chinese demand for raw materials buoyed the sector.
Antofagasta advanced nearly 4% – up 40p to 1082p, while Rio Tinto added 42p to 1521p and Anglo American rose 35p to 1265p.
But the biggest gains came from C&W as analysts looked beyond lacklustre half-year results to focus instead on further restructuring plans and the intention to buy back £250m (€358.7m) of shares.
Elsewhere in the sector, Vodafone cheered 0.25p to 140p as chief executive Arun Sarin spoke of “a new era in mobile communications”.
British Airways was among other risers, ahead 5.5p to 227.75p, as oil prices continued to weaken in New York. ICI – another stock impacted by high energy costs – gained 5.25p to 222.5p.
On the downside, Scottish Power slumped almost 8% after warning its US division PacifiCorp would miss targets for the full year. The fall in shares - down 28.5p to 402.5p – came despite strong growth in the UK.
Outside the top flight, food producer Dairy Crest lifted 5.75p to 366.75p as it unveiled a 10% rise in first half profits.
Logistics group Christian Salvesen moved a penny higher to 62.5p after saying it had lured a former senior executive back from a rival in order to become chief executive.
