London’s FTSE 100 Index surged to its highest level in more than five years today thanks to optimism in the eurozone.
The FTSE 100 closed 1% or 60.9 points ahead at 6,379.1 – its highest level since January 2008 – but Vodafone shares were 2% lower as concerns resurfaced over the mobile phone giant’s prospects in battered European markets.
With broker Bernstein cutting its price target to 135p from 170p in the wake of the company’s recent trading update, Vodafone shares slipped 3.3p to 163.5p.
Banking group Standard Chartered was among the biggest risers in the top flight, up 41.5p to £17.71, after broker Morgan Stanley upgraded its rating on the stock.
Lloyds Banking Group was 0.6p higher at 55.3p, despite a £4.3million fine from the Financial Services Authority for failings that resulted in up to 140,000 customers receiving delayed payment protection insurance redress.
Holiday Inn parent Intercontinental Hotels was 36p lower at £19.53 after results showing a 10% rise in full-year profits to £396.2million prompted investors to take profits following a recent strong run for the shares.
Meanwhile, Dairy Crest shares were 10.7p higher at 431.7p after it retained its contract to supply liquid milk to supermarket Sainsbury’s for a further three years.
The biggest FTSE 100 risers were TUI Travel up 13.1p to 329.7p, Rolls-Royce ahead 39p to £10.43, Aberdeen Asset Management 12.7p higher at 437p and RSA Insurance up 3.9p to 136.3p.
Among the biggest FTSE 100 fallers were Morrisons 3.1p lower at 260.8p and Intu Properties down 2.2p to 358.1p.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that Hunting finished 2.6% higher at 892.5p and Standard Life edged up 2.5% to 345.2p.
Among the day’s fallers, Eland Oil & Gas fell 0.8% to 128.625p, Faroe Petroleum lost 0.3% to 144.125p and Petrofac ended the session down 0.3% at £16.13.