* FTSE gains 0.7 pct as UK corporate results impress
* Reed Elsivier tops risers as it beat expectations
By David Brett
LONDON, July 29 (Reuters) - Britain's top shares gained on
Thursday as a deluge of upbeat earnings from the UK's top firms
lifted investor sentiment, with Reed Elsevier <REL.L> the top
performer after its first-half results topped expectations.
By 1037 GMT, the FTSE 100 <> was up 38.00 points at
5,357.68 index, having closed down 45.99 points at 5,319.68, on
Wednesday.
"Company earnings are coming in thick and fast and the
general theme so far has been one of outperformance," said
Joshua Raymond, market strategist at City Index.
Reed Elsevier topped the FTSE 100 <> risers list,
adding 5.8 percent, after the publishing and events group posted
forecast-beating first-half results. []
Strong results helped drugmaker AstraZeneca <AZN.L> rise 4.4
percent, as the firm doubled its 2010 share buyback programme
and received an endorsement from a U.S. advisory panel for its
potential blockbuster heart drug Brilinta. []
The defence sector enjoyed good gains, with Rolls Royce
<RRS.L> up 0.7 percent as the engine and turbine maker reported
a stronger than expected first-half profit and raised its
full-year forecasts. []
Europe's largest defence contractor BAE Systems <BAES.L>
climbed 2.3 percent after posting a 14 percent rise in
first-half earnings and a bullish outlook. []
Aerospace electronics group Cobham <COB.L> added 1.2 percent
as it said it won a prime contract with the U.S. missile defence
agency. []
Telecoms were also higher as BT <BT.L> unveiled a 6 percent
rise in first-quarter adjusted core earnings. []
Vodafone <VOD.L> rose 1.2 percent as talk turned to plans
for an initial public offering by the Indian telecoms venture
between the British mobile telecoms provider and Essar Group,
which Essar said are at an initial stage. <ID:nSGE66S0FF>
HEAVEYWEIGHT SUPPORT
The energy sector reversed early losses as investors
digested Royal Dutch Shell's <RDSa.L> second-quarter results.
[]
Europe's largest oil company, which rose 1.0 percent, also
said it would boost asset sales, echoing a strategy announced
earlier this week by rival BP <BP.L>, which gained 0.5 percent.
Banks were rallying, having paused for breath in the
previous session after recent strong gains which followed relief
after Europe's recent stress tests.
Lloyds Banking Group <LLOY.L> and Standard Chartered
<STAN.L> were up 0.9 percent each.
The FTSE was back on the front foot after Wednesday's
session pared gains made over the previous week but traders
warned the rally could be short-lived.
"We are not really seeing the market break new highs despite
some decent corporate results. We have been here before and
retraced quite sharply," said Geoff Wilkinson, head of research
at Mint.
On the downside, Rexam <REX.L> was the standout faller,
shedding 2.6 percent after Credit Suisse cut its rating for the
drink-can maker to "neutral" from "outperform" following the
firm's first-half results on Wednesday.
BSkyB <BSY.L>, which is considering a proposed takeover from
its largest shareholder News Corp <NWSA.O>, was down 0.8 percent
as it reported fourth-quarter figures and said full-year results
would be in line with forecasts.
The world's second-biggest cigarette maker British American
Tobacco Plc <BATS.L> dropped 1.0 percent after Morgan Stanley
cut its recommendation to "equalweight" from "overweight" after
Wednesday's results.
In the U.S., Wall Street futures pointed to a firmer start,
with the main data of interest in the afternoon the latest
weekly jobless claims, due at 1230 GMT.
(Editinb by Karen Foster)
