FTSE index registers modest gain

London's benchmark FTSE 100 Index has made modest gains as top flight telecoms stocks and weaker-than-expected figures from advertising…

London's benchmark FTSE 100 Index has made modest gains as top flight telecoms stocks and weaker-than-expected figures from advertising giant WPP curbed a stronger rise.

Dealers said the Footsie, which set year-long highs earlier this week, was consolidating gains after its recent run of strength.

After the first hour of trading the blue chip Footsie was 3 points higher at 4226.5 following a positive finish on Wall Street overnight.

In London, WPP was most prominent among the losers as it slipped 8p to 562p after reporting lower revenues and profits in the first half.

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The advertising industry leader stuck by hopes for a market recovery next year.

Elsewhere, mobile phone firms were out of favour with Vodafone falling 1.5p to 118.25p and mmO2 off 0.5p at 54.5p.

On the upside, InterContinental Hotels jumped 3p to 512p with the news that it plans to sell prestigious London May Fair Hotel in a deal worth £115 million sterling.

Outside the Footsie, construction services group Keller climbed 3.5p to 253.5p after saying it remained confident of achieving strong annual growth despite failing to meet ambitious growth targets in the first half.

PA