COLT Telecom settled at a seven-month high as Goldman Sachs abandoned its bearish stance on the alternative telecoms carrier ahead of next month’s full-year results.

The US broker believes COLT’s fourth-quarter update on February 24 is unlikely to disappoint and thinks investors could react favourably to an increased level of financial and operating disclosure and an expected update on its new strategy unveiled in October.

With the broker also forecasting a £40 million reduction in operating expenditure in 2007 — due to simplified and automated back-office procedures and the shift of staff offshore — and moving from underperform to “in line”, COLT shares firmed 1½p at 56¾p, against a 3.3 dip in the FTSE 250 to 7,106.9.

But the session’s speculative focus was provided by Woolworths, which rallied to its best level since this month’s downbeat Christmas trading statement, up 1¾p at 39¾p on brisk turnover in 75.7 million shares, or 5 per cent of its outstanding equity. Dealers attributed most of the volume to Goldman Sachs, although it was not clear whether the US investment bank was acting on behalf of its proprietary desk or a client.

AIM-listed Inter Link Food eased 16p to 689p as Alwin Thompson, chief executive, and Colin Davies, non-executive, sold 100,000 shares apiece at 680p after Wednesday’s £12.25 million purchase of Yorkshire Cottage Bakeries. After the close, Bloomsbury Publishing, steady at 311½p, disclosed that Nigel Newton, chairman of the Harry Potter publisher, had disposed of 129,000 shares at 311p. Elsewhere, Marylebone Warwick Balfour faded ¾p to 99 ½p in the wake of Wednesday’s sale of one million shares at 100p by Joe Shashou, hotel and residential property director, the second large board- level disposal in as many days.

Alltracel Pharmaceuticals was pegged at 27p as Noel Toolan, chief marketing officer, offloaded 563,329 shares at 26p as part of a divorce settlement.

AIM’s Caledon Resources, which is to make presentations in Paris and Geneva next week, added 38p to 6¼p on an upbeat drilling report from its Mojiang gold project in China.

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