Vodafone helps FTSE touch six-week highs
Reuters
Published Nov 11, 2014 11:38
Vodafone helps FTSE touch six-week highs
By Atul Prakash
LONDON (Reuters) - Britain's top equity index rose to a six-week high on Tuesday, led by Vodafone, the world's second biggest mobile operator, after it boosted its earnings outlook.
Vodafone said it expected full-year core earnings of between 11.6 billion pounds and 11.9 billion pounds, up from its previous guidance of 11.4-11.9 billion pounds.
"This business is about anticipation and forecasts. The market is pleasantly surprised that the figures were not as bad as expected. The company is doing right things for the next two, three years. It sounds confident, which is the key," said John Smith, senior fund manager at Brown Shipley.
"We have got good positions in Vodafone. We were partly attracted by the fact that it does have cash in its balance sheet and dividend yields are quite comfortable," he added.
Vodafone surged 5.3 percent higher, enabling the blue-chip FTSE 100 index to advance by 0.1 percent to 6,619.96 points, having earlier touched 6,632.57 points which marked the FTSE's highest level since late September.
Property developer Land Securities Group also rose by 3.2 percent after reporting a 20 percent rise in half-year adjusted net asset value from a year earlier.
However, Tullow Oil fell 4.4 percent, hit by a price target cut by investment bank UBS and by the price of Brent crude oil falling close to four-year lows.
The FTSE hit a peak of 6,904.86 points at the start of September, its highest since early 2000. It then slumped to 15-month lows in October as weak European economic data knocked back stock markets but it has since clawed back ground.
Tom Robertson, senior trader at Accendo Markets, said the FTSE could have a strong run up to Christmas if it managed to stay above 6,600 points.
"It will be interesting to see if it can hold above 6,600 as this level was tested as resistance last week. If it does close above it we may be set for higher highs in the lead-up to Christmas," he said.
(Additional reporting by Sudip Kar-Gupta; Editing by Gareth Jones)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.