BT climbed to the top of the FTSE 100 amid talk that it will accelerate its £1 billion cost-cutting campaign in light of a potential takeover by the French telecoms tycoon Patrick Drahi.
The company’s savings plan, which is part of its modernisation programme, is expected to be brought forward in an announcement later this week, when it will also report its half-year results.
Shares in BT hit an 18-month high this summer when Drahi and his Paris bourse-quoted telecoms group, Altice, took a 12 per cent stake worth £2.2 billion in the company. The shares had been on a downward trajectory since, but bounced back last week as it emerged that Robey Warshaw, the corporate finance boutique, had been brought in to help man the barricades against the possible takeover attempt. BT shares gained 8p, or 5.7 per cent, to 147¼p this morning.
The FTSE 100 got off to a good start to the week as the index added 39.27 points, or 0.5 per cent, to 7,276.85. The more UK-focused FTSE 250 put on 98.29 points, or 0.4 per cent, to 23,205.2.
The news of Jes Staley quitting as chief executive of Barclays led investors towards its rivals. NatWest rose 3p, or 1.4 per cent, to 224¼p and Standard Chartered added 8½p, or 1.7 per cent, to 503½p. Barclays declined 3¾p, or 1.8 per cent, to 198¾p.
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Falling to the bottom of the FTSE 100 was Darktrace, which was down more than 10 per cent in morning trading. The cybersecurity specialist has had a tough time of it lately, trying to find buyers and instilling confidence in the stock since a critical note from Peel Hunt wiped off more than a fifth off the tech darling’s share price. Darktrace extended its losses as it dropped 74p, or 9.2 per cent, to 728½p.
Investors grew more nervous around housebuilders as the prospect of a rise in interest rates, and inevitably mortgage rates, this week looked even more likely. Taylor Wimpey shed 4¾p, or 3 per cent, to 149¾p; Barratt Developments fell 24p, or 3.6 per cent, to 639p; while Persimmon declined 82p, or 3 per cent, to £26.39; and shares in Berkeley Group retreated 119p, or 2.7 per cent, to £42.36. The losses extended on to the mid-cap index as Bellway and Vistry sank towards the bottom of the index, down 90p, or 2.8 per cent, to £32.23, and 31½p, or 2.5 per cent, to £11.88½, respectively.