* FTSE 100 hits new 2009 intra-day high
* Fed comments, eurozone data underpin recovery hopes
* Miners buoyed by firmer metal prices
* Banks extend Wednesday's rally
* Insurers up; Prudential H1 pleases
By David Brett
LONDON, Aug 13 (Reuters) - Britain's top share index was 1.5
percent higher by mid-session on Thursday, led by banks and
miners, as positive GDP figures in Europe underpinned comments
from the U.S. Federal Reserve that the worst of the recession
could be over.
By 1109 GMT, the FTSE 100 <> was up 69.66 points at
4,786.42, a new intra-day peak for 2009. The index closed 45.42
points higher on Wednesday snapping a two-session losing streak.
The euro zone economy shrank less than expected in the
second quarter, data showed on Thursday, adding to signs the
worst of the recession could be over. []
Earlier, both Germany and France suprised many commentators
by posting a rise in their respective second quarter GDP
figures. [] []
Mining stocks dominated the FTSE 100 risers chart,
underpinned by firmer metals prices on increased demand hopes.
Lonmin <LMI.L>, Rio Tinto <RIO.L>, Kazakhmys <KAZ.L> and
Xstrata <XTA.L> put on between 4.9 and 6.6 percent.
The euro zone figures came hot on the heels of bullish
noises from the Federal Reserve late on Wednesday, which said
the U.S. economy was levelling out.
The Fed. left its interest rates unchanged and extended the
duration, although it did not increase the size, of its
programme to buy long-term government debt. [].
"It seems this upward momentum has no end in sight just yet.
There was a feeling yesterday that gains were being kept on a
leash as investors waited for the Fed's interpretation of the
U.S. economic recovery, and now that leash seems to have been
let go," said Joshua Raymond, market strategist at City Index.
Banks also benefitted from the feel good factor, building on
Wednesday's gains, with Barclays <BARC.L>, HSBC <HSBA.L>, Royal
Bank of Scotland <RBS.L> and Lloyds Banking Group <LLOY.L> up
1.6-3.7 percent.
Insurers were also in demand. Prudential <PRU.L> climbed 7.5
percent as it raised its interim dividend after reporting a
smaller-than-expected drop in half-year profit, and said its
capital position remained strong. []
"The (Pru) numbers are much better than consensus," said ING
analyst Kevin Ryan.
The results provided a platform for other insurers to move
higher. Aviva <AV.L> Legal & General <LGEN.L>, Old Mutual
<OML.L> and Standard Life <SL.L> added 1.8 to 3.9 percent.
OILS MIXED, DEFENSIVES DRAG
Energy stocks were mixed, with Royal Dutch Shell <RDSa.L>,
down 0.4 percent, dragging the sector lower as traders banked
profits following gains on Wednesday.
Oil <CLc1> rose towards $72 a barrel on renewed optimism
that the U.S. economy was through the worst of the recession,
which offset bearish U.S. inventory data showing continued weak
demand.
Cairn Energy <CNE.L>, Tullow Oil <TLW.L> added 0.5 and 0.6
percent, respectively, whilst BP <BP.L> and BG Group <BG.L> were
flat.
Oil and gas services firm Petrofac <PFC.L> was a big
blue-chip riser, up 5.6 percent as the stock was added to the
MSCI UK index.
Weakness was seen among defensive stocks, with food
producers and pharmaceutical weighing on the index, as investors
turned away from perceived safe bets amid growing optimism over
the pace of economic recovery.
Cadbury <CAD.L>, Associated British Foods <ABF.L> and
Unilever <ULVR.L> dipped 0.7 to 1.0 percent, while
GlaxoSmithKline <GSK.L> dropped 0.9 percent.
Thomas Cook <TCG.L> was the biggest FTSE 100 faller, losing
4.6 percent after saying it expects to miss its operating profit
target of 480 million pounds ($788.9 million) in 2010 because of
tough market conditions.
KBC Peel Hunt cut its rating for Thomas Cook to "hold" from
"buy" following the update.
Investors were awaiting July U.S. retail sales numbers, due
for release at 1230 GMT, with a 0.7 percent month-on-month rise
forecast, after June's 0.6 percent increase.
($1=.6084 Pound)
(Editing by Simon Jessop)
