An action-packed session in London's stock market saw the recently humbled technology, media and telecom stocks stage a determined rally after an early severe sell-off, helping the FTSE 100 and the Techmark 100 back into positive territory.
Stimulated by the change of heart in the TMTs, the FTSE 100 eventually closed a net 30.5 ahead at 5,638.4, having been down 88.3 shortly after the start of trading. The blue chip benchmark is now 0.7 above the level at which it finished the first quarter. If it closes below that figure today it will have fallen for six consecutive quarters for the first time since 1973-4. The Techmark 100 rose 23.14 to 1,777.84.
But it was a more depressing performance from the second- and third-ranking stocks, with the FTSE 250 and SmallCap indices posting losses, although both finished above their lows. They suffered from another flurry of confidence-eroding profit warnings and earnings disappointments.
The 250 was finally 10.4 down at 6,264.4, after 6,226.0, while the SmallCap settled 23.9 off at 2,917.0.
The rally in the TMTs was initially triggered by a report that Banco Santander Central Hispano had no plans to sell its 2.7 per cent stake in Vodafone in the short term.
And there was more bullish news for Vodafone shareholders late in the day after the completion of another big placing of its stock, this time the near 220 million shares held by KPN, the Dutch telecoms group. Last week Telia of Sweden sold a block of 80 million Vodafone shares.
Vodafone shares, which had dropped to their lowest level since mid-October 1998 early in the session, subsequently rallied to finish the day almost 8 per cent higher.
Apart from the Vodafone activity, the main talking point of the day among dealers was the market's response to the latest cut in US interest rates.
Although not a big surprise, earlier hopes of another 50 basis points had been tempered by recent economic data the 25 basis points was initially seen as a disappointment, both to Wall Street and London. So was the statement from the Fed which was being interpreted as lacking some of the conviction of recent statements.
The latest warnings came from Trinity Mirror, the newspaper group, Michael Page, the recruitment group and a handful of Smallcaps. Turnover in equities was 2.4 billion.
