Technology stocks continued their gravity-defying performance over the week. The rise in tech stocks is likely to lead to one of the biggest ever shake-ups of the FTSE 100 Index when the constituents are reviewed next month.

Hull-based Kingston Communications is now valued at over £4.5bn and looks a certainty for inclusion. Telewest, owners of Yorkshire Cable and already in the index of leading 100 shares, saw its share price rise to an all-time high on hopes the Chancellor will bring an early end to BT's monopoly in order to bring internet access charges down.

However the yawning valuation gap between the technology and communications sectors and more traditional industries showed some sign of narrowing as bargain-hunters turned their eye to unloved sectors perceived as oversold.

Kelda Group shares have recovered from their five- year low after a broker upgrade on the water sector and on news that director John Napier bought 30,000 shares at 248p on Monday. The Provident Financial share price also perked up as interest returned to financial stocks, although remain well below their high of over £11.

William Morrison shares bounced from a two-year low in line with the food retailing sector after official statistics showed retail sales rose unexpectedly strongly in January.

Kunick shares, however, fell from recent highs after the company's AGM statement on Monday, but the chairman stated the group's long-term investment in new technology is starting to generate higher turnover.

Drummond Group's share price has fallen by a third after the chairman warned that continuing price competition in the retail sector has put significant pressure on the company's ability to maintain profitability levels.

Breakeven profits are expected for the full year, with a £1.5m provision for reorganisation costs.

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