Britain's leading shares climbed to their highest level for over two months today, boosted by results from International Power and expectations of more good news on the US economy.
The FTSE 100 benchmark index closed up 16.2 points, or 0.3 per cent, at 5,316.1, representing a third successive gain and its highest closing level since January 4th.
Oil stocks added 10 points to the FTSE's rise, with BP gaining 1.6 per cent and Shell adding 0.6 per cent, as oil prices moved above $25 per barrel on evidence of a stronger global economy and producers limiting supplies.
Telecoms stocks were knocked by news that Deutsche Telekom would cut its 2001 dividend and investments. Mobile operator mmO2 led the FTSE 100 lower for a second day with a 3.8 per cent fall. Dealers said the stock was hit by jitters about its German unit prior to a trading update due on Friday.
Rival Vodafone lost 2.5 per cent, but BT Group bucked the trend and was up 1.3 per cent.
Utility International Power topped the FTSE leaderboard with a 7.2 per cent rise after reporting 2001 profits in line with expectations, reassuring on long-term prospects and saying it was prepared to buy some of the distressed electricity generating assets up for sale worldwide.