Leading UK shares were lower late on this morning, dipping as investors took money out of telecoms, but supported above lows as oils climbed and looking well underpinned by hopes of economic recovery.
By 11.32 a.m., the FTSE 100 index was down 17.6 points at 5,329.4, up from a session low of 5,283.5 and giving back part of Monday's 47-point gain in what market watchers said was inevitable consolidation after yesterday's 11-week highs.
Cruise operator P&O Princess was up 14.2 per cent to 363p after an initial surge of 20 per cent, doubling from a recent 165p September low, as dealers said the clear benefit of its planned merger with Royal Caribbean Cruises Ltd. was cost savings.
Oil shares gained after a steadier trend in the crude price as OPEC gropes toward output cuts, with BP up 2.5 per cent to 521 pence and Shell up 1 per cent.
Telecoms shares were on the back foot as investors returned to ponder about earnings growth in the sector after the recent strong run-up. Vodafone was down 2 per cent to 186p, and former British Telecom mobile unit MMO2 was 2.4 per cent lower at 82p.
Elsewhere, the corporate news stream was largely supportive, with home improvements and electronics retailer Kingfisher Group rising 1.9 per cent after it announced a rise in sales at the upper end of expectations.
The FTSE 100's top gainer was defence contractor BAE Systems. The stock was playing catch up with other shares in its sector, dealers said, rising by 3.7 per cent. ABN Amro also repeated its buy recommendation.