VODAFONE’S looming $130m (£84bn) sale of its stake in Verizon Wireless combined with upbeat economic data from the UK and China to send the FTSE 100 Index soaring.
The top tier climbed 93.3 points to 6506.2, a 1.5 per cent increase, as worries over US military intervention in Syria went on the back burner after denting markets heavily last week.
Rio Tinto was the second- strongest climber, closing up 122p at 3035p, while Anglo American lifted 57.5p to 1536p and Antofagasta rose by 30.5p to 885.5p.
Vodafone went from strength to strength on the back of its widely-anticipated US deal, building on an eight per cent rise over the past week after confirming it was in “‘advanced discussions” about selling its stake in Verizon Wireless to Verizon.
The deal looks set to become the third-biggest in corporate history – boosting hopes of a multi-billion pound cash injection into the economy through payouts of surplus cash to shareholders – effectively another dose of quantitative easing.
The mobile phone provider is expected to use the proceeds for a special dividend of up to £40bn.
Shares were up 6.95p to 213.2p, a 3.4 per cent gain.
Rival BT also got in on the act, following a ratings upgrade from Goldman Sachs amid increased confidence over consolidation in the telecoms sector. Its shares were up four per cent or 12.9p to 338.2p.
Oil company stocks, which had been boosted by the prospect of higher prices amid a fresh Middle East conflagration, fell back, with BP off 0.65p to 445.6p and Royal Dutch Shell shedding 8p to 2165p.
Outsourcing firms G4S and Serco, which have been under pressure over alleged mishandling of Government contracts, failed to take advantage of the rally. G4S edged up only 0.9p to 260.9p and Serco was flat at 547.5p.
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