European Midday Update: Vodafone Results Lift Markets

LONDON -- Vodafone (VOD Quote) lifted the spirits of dejected investors this morning.

Shares of the world's largest mobile operator were up 14.75p, or 6.5%, to 253 ($3.64) by midmorning after it reported better-than-expected results during the six-month period ended September. The company reported proportionate (taking into account all the stakes its has in partners) EBITDA of 3.3 billion, above analysts' expectations of around 3 billion. Proportionate figures reflect the group's stakes in its businesses around the world. Vodafone's early advance dragged the market up by 40 points so that overall, the FTSE 100 was up 73 points to 6348, while the Techmark 100 shrugged off the Nasdaq Composite Index's overnight fall to add 59 points to 3137.

Other telcos rose in Vodafone's wake. British Telecom(BTY Quote) rose 22.5p to 712. Alternative carrier Colt Telecom(COLT Quote) was up 64p to 16.64 and Energis(ENGSY Quote) rose 20p to 477 after it reported a 71% rise in EBITDA to 65.5 million.

On the Continent, Deutsche Telekom(DT Quote) was up 1.45 euros to 39.48 ($33.95), France Telecom(FTE Quote) was up 2.00 euros to 107.00 and Telefonica (TEF Quote) was up 0.95 euro to 21.10.

This helped lift the markets, with the CAC-40 in Paris up 84 points to 6121 and the Xetra Dax in Frankfurt up 68 points to 6810.

Tech stocks took some heart from the Nasdaq's attempt to recoup some of its losses. Some investors clearly felt that Bookham Technology(BKHM Quote), which has been hammered mercilessly over the past few weeks, was cheap. The shares, which routinely perform triple-digit swings in both directions, added 145p to stand at 15.40.

Internet security firm Baltimore Technologies(BALT Quote) climbed 16.5p to 437 and chip designer ARM Holdings(ARMHY Quote) added 28.5p to 653.5.

The impasse in the U.S. election continues to overshadow drug and tobacco stocks. Glaxo Wellcome (GLX Quote) fell 47p to 20.13 and merger partner SmithKline Beecham(SBH Quote) slipped 6p to 919. Anglo-Swedish giant AstraZeneca(AZN Quote) was down 56p to 33.14. British American Tobacco(BTI Quote) was 12p lower to 485.