UK shares edged up higher this morning, pushed by analyst notes and investors' hopes that corporate profits will rise as the economy recovers.
Vodafone Group added 2.8p, or 1.7%, to 166.65p by 9am, after Nomura recommended buying the shares. The bank lifted its target share price to 200p, from 168p.
Nomura said in a note to investors: "Strong cost reduction should drive organic EBITDA inflexion in H2 (+2% yoy) and in FY12 (+2.8%) though the step-up in customer investment still distorts H1 margin."
The FTSE 100 added 16.50 points, or 0.28%, to 5,763.
African Barrick Gold led losses, with a 8.6% plunge, or 53p, to 570p, after the company cut its 2010 production target again. The firm said the lower production will come after it uncovered fuel theft at its Buzwagi mine.
"Investigations into this matter indicate that criminal fuel theft syndicates have widely infiltrated our mining department," the company said in a statement. "We have made the decision to suspend approximately 60 employees and a number of contractors, representing over 40% of the mining department, pending further disciplinary procedures."
