Mobile shares on road to recovery

mmO2 and Vodafone bounce back...

By Kate Hanaghan, 12 April 2002 12:25

NEWS It's been a tough week for telecoms shares with both Vodafone and mm02 taking a severe knock but there were signs of recovery in early trading this morning. Analysts have been airing their concerns that the growth of mobile operators is reaching a plateau. mm02 yesterday lost £500m from its market cap and finished 11 per cent down on Thursday's opening price. The slump was fuelled by BT's decision to launch its own virtual mobile network pushing mm02 down to close at 53.75p. Morning trading today was kinder to it with shares prices remaining static as of late morning. Vodafone faired much. Yesterday the company had 8.5p shaved off its value closing the day at 111.5p. Vodafone shares hovered around a four-year low for most of the week and although the decline was expected to continue this morning, the company has managed to claw back some of its losses with a 1.8 per cent increase as of 11:00 (BST). This bounce back partly relates to an advisory from Morgan Stanley to buy Vodafone while prices are weak.

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