Cable & Wireless is climbing sharply higher, outperforming a market which itself is heading for its sixth successive daily rise.
Shares in the telecoms group are up 3.4p to 136.8p, a 2.55% gain, despite last week's shareholder revolt against boardroom bonuses. Today's rise comes after analysts at ING Bank began coverage of the company with a 160p a share price target. ING said:
"We expect resilient revenues, margin expansion and strong cash flow growth. A sector average rating does not adequately reflect this."
Meanwhile, with banks and miners continuing to lead the way, the FTSE 100 is now 57.95 points higher at 4446.70, a 1.3% increase. With Wall Street futures pointing to a strong opening in the US - following reports that US lender CIT may have avoided bankruptcy - there is a good chance the UK market can hold onto its gains today. But traders point out that volumes are still thin, as befits a summer's day with the distraction of England attempting to bowl out Australia in the Test match.
And there is a feeling among many analysts and dealers that the buoyant mood may not last, and the market is set for a pull back. With thin trading, the prospect for a volatile time over the summer is clearly there. The reports of CIT's rescue have clearly got the week off to a good start, but there are some key corporate results coming up, from GlaxoSmithKline to Morgan Stanley and Apple, which could help determine the short term mood.
Meanwhile Lloyds Banking Group is still leading the FTSE 100 risers, up 5.25p to 72.75p on hopes for a good set of results next month. Royal Bank of Scotland is also in demand, rising 1.96p to 40.36p.
Among the miners Rio Tinto is up 78.5p at 2232.5p and BHP Billiton is 51p better at £14.94.
Oil Services group Wellstream had climbed 13.25p to 511p. There have been bid rumours circulating around the company recently, with talk of a possible 600p a share offer, although traders suggested if anything was imminent, it may have been flushed out by now.
