Key trading on the London Stock Exchange is being driven in the main by software and technology firms this morning after Microsoft Corporation yesterday revealed its earnings will beat forecasts next year.
This has boosted confidence in other software firms such as Sage and Logica CMG and lifted the FTSE 100 20 points or 0.5% to 4592 within the first hour of trading, while the FTSE All-Share index also rose 0.5% to 2287.
Sage, maker of accounting software, gained 3.75p or 2.2% to 178.25p on the back of Microsoft’s growth predications.
LogicaCMG, the computer services firm, also rose 2.5p or 1.1% to 238.5p.
Strong performances for UK technology companies also transferred to Asian markets after Microsoft’s little announcement, as it is companies like Fujitsu and Semiconductor Manufacturing which rely on technology selling well to boost their own turnover.
The Nikkei 225 index closed up 1.2% to 12,120 by 3pm close of business in Japan, in part thanks to Fujitsu’s major leap in income for the previous three months to March 31st. Fujitsu’s share price eventually closed up a huge 9.2% to Yen 715.
Hong Kong's Hang Seng index also gained 1.1% while the South Korean Kospi index added 1.3%.
And in the US yesterday, Microsoft yesterday announced the firm expects to earn as much as $1.33 a share in fiscal 2005.
This helped to lift share prices on US indices by at least 1.4%, while the Nasdaq Composite (tech stocks) index saw the best gains.
The Dow Jones index added 143.93 or 1.4% to 10.461 while the S&P 500 index gained 1.41% or 15.84 points to just under 1,140 and the Nasdaq surged 37.48 points or 1.87% to comfortably cross the 2,000 point mark at 2,032.91.IFAonline
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