London shares open in positive territory buoyed by results, telecoms rebound

LONDON (AFX) - London shares opened the week's first session in positive territory after a mixed pre-weekend session in New York last Friday, boosted by a spate of corporate results and bargain hunters moving into the beleaguered telecoms sector, dealers said. At 8.40 am, the FTSE 100 index was 21.8 up at 5880.4, with the wider indices largely resting in positive territory -- though the techMARK was 0.43 off 2,248. Volume saw 57.2 mln shares changing hands in 7142 transactions -- 16.44 mln in Vodafone alone. Pre-weekend on Wall Street, the DJIA closed 16.21 points firmer at 10,466.3, while the Nasdaq composite index lost 65.74 points to end at 2,117.63. In Asia today, the Nikkei 225 index closed at 12,322.16, up 60.36 points recovering earlier losses after the lower house of parliament rejected a no-confidence motion against Prime Minister Yoshiro Mori. The Hang Seng index closed the morning session at 13,937.03, down 29.40 points. Trading this week in London is likely to remain fairly and nervous and volatile again ahead of what is expected to be the last Budget of this Parliament on Wednesday, and the outcome of the latest Bank of England Monetary Policy Committee meeting due at midday Thursday. Today's UK data is consequently unlikely to have much real impact -- UK provisional Feb M0 UK, and Feb official reserves numbers are due at 9.30 am, together with the latest UK construction sector PMI survey. Another flow of major corporate news and results provided most of the early direction in London together the usual swirl of weekend press speculation. Media group Pearson pushed higher in opening trades after revealing a pre-internet operating profit of 686 mln stg -- up from 588 mln last time out -- and the top of the market range. BNP Paribas repeated its 'outperform' advice on the news, as Pearson shares gained 29 at 1590. However, logistics group Exel was isappointed by mid-range full year numbers, with its pretax pre-exceptional, pre-goodwill profit slipping to 190.6 mln stg, down from 201.9 mln. Exel shares were down 2 at 885, despite the group expressing confidence over the future, despite short term uncertainties, and UBS Warburg reiterating its 'buy' advice on the group. Blue chip Hays was also under pressure after results, with its interim pretax pre-exceptional, pre-goodwill profit of 130 mln stg, up from 121.2 mln last year, but at the bottom of 130-135 mln stg market range. Hays shares were 4 pence off at 320. Meanwhile telecoms issues remained under spotlight as bargain-hunters began to move back into the sector after its recent shake-out: Colt Telecom led the FTSE 100 risers in early trades -- gaining 36 at 373 -- with Telewest 2-3/4 higher at 130-3/4, and market heavyweight Vodafone 32 pence firmer at 184. BT shares were up 10 at 542 after the Sunday Telegraph reported that the group is set to abandon plans to demerge its BT Wireless in favour of a discounted share offering to existing shareholders. Oil stocks were firm in early trades, as the price of crude continues to rise once again ahead of OPEC's next meeting at which it is hoped output will again be cut; supply concern were also awakened by reports of a snowstorm hitting the U.S. east coast. BP Amoco shares were up 7-1/2 at 579-1/2, Shell gained 6 at 573, while smaller cap Edinburgh Oil & Gas pushed 1-3/4 pence higher to 22-1/4 -- also boosted by its coal mine methane development deal with a unit of Innogy. Elsewhere, British Airways shares topped the blue chip risers, gaining 11-1/2 at 363 after the FT noted that Dutch airline KLM has made a conditional joint approach with a private equity group to take over BA's discount airline Go. Elsewhere, results on the second line provided some positive early features: Waste Recycling shares were 3 higher at 490-1/2 after the group revealed pretax profit for the full year of 23.4 mln stg, against a previous 17.2 mln. Aggregate Industries shares were 1/2 higher at 75-1/2 after upbeat comments on long term prospect

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