London shares rebounded on Thursday, snapping out of a two day drop on talks between mobile phone giant Vodafone and US joint-venture Verizon which sent the British firm’s stock rocketing to a 12-year-high.
The benchmark FTSE 100 index of leading shares rose 0.82 percent higher to end the day at 6,483.05 points as anxiety over any imminent Western intervention in Syria eased.
Vodafone is in negotiations over the possible sale of its stake in Verizon Wireless said to be worth more than $100 billion.
Excitement over the deal pushed the telecoms sector to its biggest one-day rally in more than two years.
Spreadex trader Max Cohen said “Vodafone was leading the way within the FTSE 100, the company confirmed today that it was in talks with Verizon Communications for possible disposal of its 45 percent stake in a joint venture.”
Vodafone topped the leaderboard gaining 8.16 percent to close at 204.75 pence. It was followed by a strong performance from Melrose Industries, as the company’s first half results revealed revenue was just over £1 billion — up from £466.2 million a year earlier — lifting the share price 6.12 percent to close at 301.80 pence
At the bottom of the pile was outsourcing group Serco, which sank 11.21 percent to 538.50 pence — its biggest slump in 11 years — after revealing it had misreported data on escorting prisoners.
Volatility continued for commodity markets with Antofagasta, the second biggest lagger, falling 2.92 percent to 849 pence on lower copper prices.
Vodafone was the most traded stock, with 410. 78 million units changing hands, followed by Lloyds Banking Group which saw 74.31 million units changing hands.
Meanwhile on the currency markets, Sterling was a little lower, standing at $1.5494 at 5.01 pm from $1.5516 dollars at the same time on Wednesday, while the UK currency edged up to 1.1710 euros from 1.646 euros over the same period.
London shares end higher lifted by Vodafone rally
