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Risk Warning
06/01/2011
The leading share index pushed higher by midday on Thursday driven by strength in heavyweight banks and commodities supported by recent signs of continued economic recovery.
At 12 p.m., the FTSE 100 .FTSE was up 42.91 points, or 0.7 percent at 6,086.77. The blue chip index has put on more than 3 percent in the first three trading sessions of 2011.
"Positive sentiment in the UK is rife ... Analysts from far and wide have been predicting a plentiful year for equities, with some even suggesting a possible break above 7,000 before the year-end," said Ben Critchley, sales trader at IG Index.
Banks .FTNMX1770 were the top performing blue chips, recovering from earlier falls after recent signs of economic recovery from around the world, with global lender HSBC (HSBA.L) providing the main boost, up 1.1 percent.
Miners .FTNMX1770, which missed out on the rally in the previous session played catch-up, helped by firmer copper prices, with Xstrata (XTA.L) ahead 3.1 percent.
However, mining company Antofagasta (ANTO.L) shed 0.7 percent, knocked by a double-downgrade to "reduce" from "buy" from Nomura.
Silver miner Fresnillo (FRES.L) was the top FTSE 100 faller, down 1.9 percent, having posted a strong run in the past few weeks with the silver price and vague bid speculation.
But gold miner Randgold Resources (RRS.L) added 3 percent, lifted by an upgrade to "buy" from "hold" by Citigroup.
Energy shares also moved higher, mainly thanks to strength in BP (BP.L), ahead 1.8 percent, which shrugged off a scathing report from a U.S. presidential panel on the Gulf oil spill.
Evolution Securities said the report "supports our view that a gross negligence case against BP looks hard to prove, and could ultimately reduce BP's liabilities".
ARM EMBRACED
British chip designer ARM Holdings (ARM.L) was the top blue chip gainer for the second consecutive session, up 8.3 percent to take its advance so far in 2011 to more than 16 percent, having risen 138 percent in 2010.
U.S. firm Microsoft Corp announced on Wednesday that it was linking up with the ARM to take on Apple Inc (AAPL.O) in the red-hot tablet and smartphone arena.
Rolls-Royce (RR.L) was also a strong gainer, up 1.9 percent after the engine maker completed contracts worth 5 billion pounds with British Airways (BAY.L) for its Trent engines, which will be used to power up to 61 new aircraft.
"Rolls Royce is clearly in very rude financial health, with the potential costs of the Trent failure seemingly modest in comparison to the very bright future ahead of the company," said Richard Curr, head of dealing at CFD specialist Prime Markets.
Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.