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outlook for global growth yesterday, but political turmoil across the Arab World kept investors cautious.
Vodafone and BT Group were strong gainers, up 1,9 and 2,5 percent respectively, and saw high volumes, with traders saying they got a boost from a note on the telecomms sector from Morgan Stanley in which they were upgraded.
By 0859 GMT, the FTSE 100 was up 17,10 points or 0,3 percent at 5 990,88 after it fell 0,3 percent on Monday.
Kuwait’s oil minister Sheikh Ahmad al-Abdullah al-Sabah said OPEC is in
talks about boosting production for the
first time in more than two years, which pushed Brent crude futures more than US$2 lower.
This helped reassure investors who were worried that soaring energy prices could derail a fragile domestic and global recovery, but some concerns lingered.
The index is still over 100 points below its peak for the year set last month, and the situation in Libya continued to be watched closely by investors.
“There have been soothing noises which has put downward pressure on the oil price but whichever way you look there’s a sea of concern,” said Richard Hunter, head of equities at Hargreaves Lansdown.
Britain and France are spearheading a drive at the United Nations for a no-fly zone over Libya after Gaddafi’s warplanes attacked rebels.
Two Arab newspapers and al Jazeera television said on Monday that Libyan leader Gaddafi was looking for an agreement allowing him to step down, but there was no official confirmation of the reports.
Traders said reports that the bank may be mulling a move to Hong Kong was also positive for the stock as such a development would lead to lower costs.
Insurer Old Mutual gained 1,6 percent after it narrowly beat expectations
with a 14 percent increase in profits and said it was sticking by a three-year strategy aimed at simplifying the group’s structure.
Antofagasta edged 0,2 percent higher after it said it will pay a special dividend of 100 cents a share, the Chilean miner said yesterday as it posted a jump in full-year earnings on higher copper prices and production. However, miners overall were pressured as metal prices dipped, while energy firms were also in retreat, tracking the fall in crude prices. – Reuters.