FTSE set for best month in nearly a year

Reuters

Published Jan 30, 2015 11:17

FTSE set for best month in nearly a year

By Alistair Smout

LONDON (Reuters) - Britain's top share index was set for its strongest monthly performance in almost a year on Friday, consolidating near four-month highs, although a fall in BT (L:BT) put pressure on the market.

Telecoms group BT dropped 2.2 percent after agreeing to pay down its ballooning pension deficit, and signing off on an upgrade of its fibre network.

Traders said the steps to put its finances in order ahead of a football rights auction and a deal to buy mobile network EE were needed, but would weigh on the stock in the short term.

"BT have a lot of bills coming their way, plus the next round of bidding for football services. Having made their bed with regards to providing a certain standard of service and coverage, they'll have to lie in it, and that won't be cheap," IG market analyst Alastair McCaig said.

"The acquisition of EE is also being worked through the books. The pension deficit is also there, so there's a sizeable range of bills which are all fairly meaty."

The FTSE 100 (FTSE) index fell 0.7 percent to 6,764.10 points going into the middle of the trading session, although the index remained up by around 3 percent in January -- its strongest monthly performance since February 2014.

The FTSE 100 hit a peak last year of 6,904.86 points, which marked its highest level since early 2000, although it then lost ground towards the end of 2014.

However, investors' appetite for equities has since been boosted again by the European Central Bank's (ECB) decision last week to launch a sovereign bond-buying programme.