LONDON -- A wall of money continued to pour into technology and telecom stocks Friday morning, driving Europe's major indices higher.

The gain in the

FTSE 100

was led by a renaissance in

Vodafone

(VOD) - Get Report

, which posted an impressive 20.75p gain to stand at 299 ($4.34). Investors have clearly recovered from the third-generation hangover that has dogged the stock lately. The Vodafone gain accounted for almost half the rise in the FTSE 100, which by midday was up 114 points at 6787.

Elsewhere in telecom stocks,

British Telecom

(BTY)

added 23p to 898, amid an announcement from the company's finance director saying the company is ruling out any takeovers and mergers in the short term while it gets its debt position under control. Credit rating agency

Standard & Poor's

downgraded BT four notches last week. Shares in

Colt Telecom

reached a session high of

25.85, before retreating to stand 68p at

23.88.

Huge gains in tech stocks, also:

Bookham Technology

(BKHM)

put on 335p to

44.70, making its the biggest riser on the main index.

ARM Holdings

TST Recommends

(ARMHY)

was up 28.5p to 948.5, while

Geo Interactive Media

was up 52.5p to

16.60.

On the Continent, the

CAC-40

in Paris was up 157 at 6782 and the

Xetra Dax

in Frankfurt was up 120 at 7336.

Here, too, the emphasis was on tech and telecom shares.

Telefonica

(TEF) - Get Report

was up 1.95 euros after impressive first-half results that showed revenue rose 24% to 13.3 billion euros ($11.8 billion) and

France Telecom

(FTE)

was up 11.00 euros at 139.00.

Phone equipment makers

Nokia

(NOK) - Get Report

and

Alcatel

(ALA)

also rode the wave. Nokia was up 2.19 euros at 52.00 and Alcatel was up 1.90 euros at 94.60.