London midday: Mining stocks and telecoms M&A give FTSE a lift

26th Nov 2014 11:42

Decent gains from miners and M&A speculation in the telecoms sector gave UK stocks a boost on Wednesday, along with data which confirmed that the British economy expanded as expected in the third quarter.London's FTSE 100 was up 0.2% at 6,747 by midday, with resource shares leading the charge, rebounding after recent falls.BT was on the rise on reports that it could snap up a UK mobile network, while Sky gained as rumours resurfaced that Vodafone could bid for the group.However, the FTSE 250 was being weighed down by Thomas Cook which plummeted after the surprise exit of its boss Harriet Green.The second estimate for UK gross domestic product (GDP) growth in the third quarter was unrevised at 0.7%. While a slowdown from the 0.9% expansion seen in the second quarter, growth was "still very decent", according to economist Howard Archer from IHS Global Insight.He said that the data "will allow the Chancellor to highlight the relative strength of the UK economy when he delivers his Autumn Statement next Wednesday, and to talk up the government's handling of the economy".A raft of US economic data is due out on Wednesday afternoon with many indicators being released early ahead of the Thanksgiving holiday. These include durable goods, jobless claims, personal income and spending, new and pending home sales, the Chicago manufacturing survey and the final revision to the November University of Michigan consumer-confidence index.Thomas Cook CEO departsShares in Thomas Cook sank over 20% as it announced that chief executive Harriet Green has stepped down after just over two years in charge of the troubled travel group. Green, who is due to be replaced by chief operating officer Peter Fankhauser with immediate effect, claimed her turnaround "was complete" as annual results showed improving profits from all divisions.Mining stocks were performing well after two days of declines as stocks pulled back after a China-inspired rally last week. Antofagasta, Randgold Resources and BHP Billiton were putting in decent gains.BT Group was continuing to rise after saying that it was in talks with various companies about buying their UK mobile phone networks. It had previously announced it was in discussions with Telefonica, which owns O2, though Deutsche Telekom and Orange confirmed they are also in talks with BT about selling their EE joint venture.Possible industry consolidation surrounding BT, which already runs broadband and TV operations, has also prompted speculation that other companies could look to combine operations. There were renewed rumours that Vodafone could approach Sky with a possible takeover offer, sending shares in both firms higher.Weak market conditions throughout Europe put gross margins under pressure at Wolseley, though shares in the plumbing and heating products distributor edged higher as profit still managed to rise in the first quarter.Catering group Compass underwhelmed with its annual results, as it lifted its annual dividend by 10% after increases in both sales and profits in the year to 30 September.Also lower was United Utilities despite half-year results showing modest improvements in revenues and profits. The water company expressed confidence about the forthcoming new regulatory pricing structure after submitting a plan for lower prices. Market MoverstechMARK 2,917.80 +0.27%FTSE 100 6,747.33 +0.24%FTSE 250 15,806.00 -0.16%FTSE 100 - RisersAntofagasta (ANTO) 765.50p +4.36%BT Group (BT.A) 405.60p +2.48%Sky (SKY) 934.50p +1.80%Randgold Resources Ltd. (RRS) 4,498.00p +1.58%BHP Billiton (BLT) 1,613.00p +1.22%Vodafone Group (VOD) 227.25p +1.20%Rolls-Royce Holdings (RR.) 870.50p +1.10%SSE (SSE) 1,596.00p +1.01%Kingfisher (KGF) 294.10p +0.96%Shire Plc (SHP) 4,511.00p +0.96%FTSE 100 - FallersTUI Travel (TT.) 419.90p -1.55%Compass Group (CPG) 1,059.00p -1.40%Aberdeen Asset Management (ADN) 453.30p -0.96%IMI (IMI) 1,194.00p -0.91%Admiral Group (ADM) 1,211.00p -0.90%Smith & Nephew (SN.) 1,113.00p -0.89%CRH (CRH) 1,478.00p -0.87%Whitbread (WTB) 4,431.00p -0.83%Weir Group (WEIR) 2,057.00p -0.82%ITV (ITV) 207.50p -0.81%FTSE 250 - RisersBalfour Beatty (BBY) 185.60p +4.98%PayPoint (PAY) 968.50p +4.65%Zoopla Property Group (WI) (ZPLA) 185.30p +3.75%Kaz Minerals (KAZ) 256.40p +3.55%Nostrum Oil & Gas (NOG) 651.50p +3.17%JD Sports Fashion (JD.) 479.00p +2.79%Drax Group (DRX) 611.00p +2.35%Fidelity China Special Situations (FCSS) 131.70p +2.25%Synthomer (SYNT) 227.20p +2.11%Card Factory (CARD) 247.00p +2.02%FTSE 250 - FallersThomas Cook Group (TCG) 109.80p -20.38%Britvic (BVIC) 663.50p -4.74%Foxtons Group (FOXT) 150.00p -4.15%QinetiQ Group (QQ.) 197.70p -4.08%Rightmove (RMV) 2,160.00p -3.70%Bwin.party Digital Entertainment (BPTY) 103.40p -3.36%Howden Joinery Group (HWDN) 383.90p -2.27%Evraz (EVR) 159.00p -2.21%Afren (AFR) 65.75p -2.08%EnQuest (ENQ) 65.25p -2.03%