* Miners, oils higher; commodities rebound
* Cairn Energy leads strong energy sector after results
* Banks rally; Dubai debt plans imminent
By David Brett
LONDON, March 23 (Reuters) - Britain's top share index rose
0.5 percent on Tuesday, hitting a fresh 21-month closing high,
led by commodity, energy and banking stocks as fears over
monetary tightening effects ebbed.
The FTSE 100 <> index ended 29.09 points higher at
5,673.63, after hitting an intra-day high of 5,695.94. It was
the highest close since June 19 2008.
Miners added the most points to the index as metal prices
rebounded, having been hit by worries that monetary tightening
in China and India could weigh on global demand.
"Investors have shrugged aside the monetary tightening
concerns for now, buying back in on the previous session's dips,
while the bullish corporate data has also given the market a
lift," said Jimmy Yates, head of equities at CMC Markets.
Eurasian Natural Resources <ENRC.L>, Lonmin <LMI.L>, Rio
Tinto <RIO.L> and Vedanta Resources <VED.L> gained 2.4 to 3.8
percent.
Cairn Energy <CNE.L> was the top FTSE 100 gainer, up 8
percent to a year high after the oil explorer accompanied
full-year results with upbeat comments on its operations in
India and Greenland, prompting BofA Merrill Lynch to hike its
net asset value. []
Other energy stocks rallied as crude <CLc1> prices rose to
around $82 a barrel. BP <BP.L> and Royal Dutch Shell <RDSa.L>
firmed 0.8 and 0.5 percent respectively.
Banks bounced back from Monday's losses, when fears
resurfaced over the debt situations in Greece and Dubai.
Barclays <BARC.L>, Standard Chartered <STAN.L>, Royal Bank
of Scotland <RBS.L> and Lloyds Banking Group <LLOY.L> up 0.6 to
3.1 percent.
Debt-laden Dubai World [] will present plans to
restructure its $26 billion debt pile to creditors this week,
sources familiar with the talks told Reuters. []
Life insurer Legal and General <LGEN.L> was a strong gainer,
up 4.7 percent after it posted profits ahead of analysts'
expectations. []
DEFENSIVES DOWN
As the appetite for risk spread among investors, perceived
defensive stocks were the main drag on the FTSE 100.
Imperial Tobacco <IMT.L>, the world's fourth-biggest
cigarette maker, shed 0.4 percent after it said its half-year
cigarette volumes will be down around four percent.
[]
Peer British American Tobacco <BAT.L> fell 0.5 percent.
Drugmakers, GlaxoSmithKline <GSK.L> and Shire <SHP.L> fell
0.7 and 0.2 percent respectively, while consumer goods giant
Unilever <ULVR.L> shed 1.6 percent and drinks maker SAB Miller
<SAB.L> dropped 0.5 percent.
Home improvement retailers fell sharply. Home Retail
<HOME.L> and Kingfisher <KGF.L> were off 2.5 and 2.6 percent
respectively, with traders citing the profit warning issued by
mid-cap floor coverings retailer, Carpetright <CATVU.L> as a
catalyst. []
Kingfisher reports full-year results on Thursday.
BAE Systems <BAES.L> was another big faller, losing 2.2
percent after broker Bernstein downgraded the defence stock, the
day after U.S. firm General Dynamics <GD.N> beat BAE to a UK
tank building contract.
Eyes will turn to the UK Budget speech from finance minister
Alistair Darling on Wednesday. []
British retail sales growth slowed more than expected in
March, according to industry figures, while annual consumer
price inflation slowed last month for the first time since
September. [] []
In the United States, sales of previously owned homes fell
slightly in February, underscoring the fragile nature of the
housing market's recovery. []
