UK stocks : FTSE 100 up 0.05 pct

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Reuters: London, Jan 11 2013, 03:36 IST
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UK stock closing: Britain's top share index closed above the 6,100 resistance level for the first time since May 22 2008, recovering from a late wobble after a choppy trading session.

The FTSE 100 index was up 2.86 points, or 0.1 percent, at 6,101,51, having seen some late profit-taking erased in the closing auction, but the gains seemed fragile to traders.

"The index is looking toppy at the moment, providing an opportunity for traders to book profits," said Ishaq Sidiqqi, market strategist at ETX Capital.

"It is likely we will see a retreat in tomorrow's session, particularly with (British) manufacturing and industrial production numbers out which may be a lot uglier than expected after the recent slide in PMI services data."

Banking was the top performing blue chip sector as it drew continued strength from the recent decision by global regulators to water down their liquidity requirements.

HSBC added 0.5 percent, alone providing nearly all of the blue chip's points gain, after saying its $9.4 billion deal to sell its stake in Chinese insurer Ping An remains on track, scotching recent media reports that the sale had run into trouble.

Emerging markets-focused peer Standard Chartered also saw good gains, ahead 0.8 percent, with traders citing the impact of an upgrade in rating by Societe Generale to "buy".

Chip designer ARM Holdings was the top blue chip riser, up 4.4 percent, lifted by rumours of a new, cheaper Apple iPhone, which uses the firm's products.

A reversal by miners was a big drag on blue chip sentiment,

... contd.

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