Cable & Wireless Communications was among the mid-cap risers this morning as news of a potential deal for its holding in Macau's biggest telecoms group boosted its shares.
CWC advanced 3.9pc after confirming it was in talks to sell its 51pc stake in Companhia de Telecomunicacoes de Macau to Citic Telecom. The FTSE 250 company said last month it could sell its Monaco and Islands division to Bahrain Telecommunications.
"The market is likely to be pleased if CWC does deliver on its strategy of streamlining business to focus on Caribbean and Central America," said broker Liberum Capital.
Overall, the FTSE 100 continued to advance on Spanish bail-out hopes, adding 16 points after surging almost 65 points on Tuesday. Although rumours had swirled around the market yesterday that Spain would be downgraded by Moody's, the rating agency last night left the country's investment-grade rating unchanged.
The positive sentiment helped riskier shares rise, with miners occupying the top five spots on the blue-chip index this morning. Eurasian Natural Resources Corporation was the biggest the gainer with an increase of 4.6pc. A rise in third-quarter coal output helped Xstrata advance 1.6pc.
Elsewhere among the blue-chips, Royal Bank of Scotland, which confirmed it was leaving the Government's Asset Protection Scheme tomorrow, put on 1.6pc in early deals, the best-performing bank today. Barclays shed 1.7pc and Lloyds Banking Group lost 1.1pc.
"Today’s news should be viewed as RBS’s ongoing financial rehabilitation and progress towards re-privatisation, which nevertheless still appears fairly remote," said Oriel Securities.