TMT stocks fail to lift blue-chip index

BT shares rose by almost 1pc on hopes it is about to inject up to £1.5bn into its troublesome final salary pension fund. The move, reported over the weekend, would not only help the company tackle its £5.4bn shortfall but also secure a multi-million-pound tax credit - as companies receive tax relief on cash they pay into their pension schemes. Oriel Securities, which has a "buy" rating on the telecoms group, said: "A large, early pension top-up payment will persuade more investors to look beyond BT's pension deficit, and instead focus much more on the group's strong cash flow growth prospects (and thus also on BT's strong dividend growth and capital appreciation prospects)." Elsewhere in the sector, Vodafone edged 0.5pc higher on suggestions it could receive a £1bn tax benefit if it succeeds in its attempt to buy Cable & Wireless Worldwide (CWW). Analysts at Espirito Santo said the potential tax benefit could allow the company to pay a higher premium than potential rival bidder Tata Communications.