The London market regained fresh highs above 6,700 this afternoon as mining stocks soared and amid departure rumours surrounding Arun Sarin, chief executive of Vodafone.

The FTSE 100 was 79.2 higher at 6,712.2, its highest point since July, led by Vedanta Resources, up 6.3 per cent at 238.2p. Antofagasta was the second-highest gainer, up 39p at 875.5p, a rise of 4.66 per cent.

BHP Billiton was up 4.44 per cent, adding 80p to 1,881p.

Vodafone shares jumped 2.51 per cent in midmorning, as rumours circled that Arun Sarin, the chief executive of the group, was set to leave the mobile operator.

Mr Sarin's future at Vodafone has been uncertain since the summer of 2006, when a group of shareholders protested about underperforming shares and the perceived lack of ability by Mr Sarin to cope with the challenges facing the company.

The revolt culminated with 15 per cent of investors failing to back him at the 2006 summer annual meeting.

The shares rose 4.3p to 175.3p at 10am.

At 12.30 the FTSE was up 72.1 points at 6,705.1

The fund manager Schroders was a top FTSE 100 riser, up 57p to £15.57, extending yesterday’s gains amid fresh rumours that the firm could sell its investment arm to focus on private banking, or only sell several of its low margin businesses.

Elsewhere in the financial sector, the insurer Resolution added 11p to 691p after the firm revealed after the market close last night that it has rejected a 660p per share cash proposal from Pearl Assurance.

Resolution said that Pearl’s proposal significantly undervalued the group and its prospects as part of a planned merger with Friends Provident.

Northern Rock also continued upwards, adding 11.75p to 261.75p after its two-day rally.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive