* Miners and oils rally as commodities rebound
* UK Q3 GDP shrinks at slower pace than previously estimated
* Compass Group jumps as profit tops market expectations
* Defensive pharmaceuticals also gain
By Harpreet Bhal
LONDON, Nov 25 (Reuters) - A rebound in commodity prices
lifted mining and energy shares, pushing Britain's top share
index up 0.6 percent around midday on Wednesday, with equities
also helped by optimistic comments by the U.S. Federal Reserve.
By 1214 GMT, the FTSE 100 <> was up 29.33 points at
5,353.29, retracing Tuesday's losses. Investor sentiment was
boosted by the Fed's confidence on the durability of the
economic recovery in the United States. []
Miners were the biggest gainers, underpinned by a rally in
metals prices and a rise in gold <XAU=> to a fresh high.
Among the bigger risers were Randgold Resources <RRS.L>,
Anglo American <AAL.L>, BHP Billiton <BLT.L> and Lonmin <LMI>,
which rose 2.6 to 2.8 percent.
Earlier data showed that Britain's economy shrank 0.3
percent in the third quarter, from a previous reading of 0.4
percent, and most analysts expect a return to growth at the end
of the year. []
The FTSE has so far rebounded 55 percent since hitting a low
in March, and gains so far in November have put the index on
track to post its best monthly performance since August.
But Jeremy Batstone-Carr, head of research at Charles
Stanley said that the rally on the FTSE was vulnerable to the
fact that the recovery in the economy remains shaky and
investors were increasingly looking to safe-haven stocks.
"It does not surprise me that it has been the defensive
sectors of the market which have begun to show their paces while
the more cyclical sectors have begun to lose some form," he
said.
Pharmaceuticals, seen as resistant to a weak economy, were
higher. AstraZeneca <AZN.L>, GlaxoSmithKline <GSK.L> and Shire
<SHP.L> added 1-2.2 percent.
Oil majors also gained, as crude prices <CLc1> edged up
above $76 a barrel. BP <BP.L>, BG Group <BG.L> and Royal Dutch
Shell <RDSa.L> gained 0.3 to 0.4 percent.
The chief executive of Royal Dutch Shell forecast it would
not need to borrow any more money if oil remained around $70 per
barrel, the Financial Times reported. []
COMPASS HITS 7-YR HIGH
Among individual stocks caterer Compass Group <CPG.L> added
6.4 percent and hit a 7-year high after reporting a 33-percent
jump in full-year pretax profit at the top end of market
expectations. []
International Power <IPR.L> gained 3.4 percent, with traders
citing renewed speculation of M&A activity after the Daily Mail
reported GDF Suez <SCZ.PA> as a possible bidder for the British
power generation firm.
On the downside, hedge fund Man Group <EMG.L> shed 4.2
percent, the top faller on the index, in a further reaction to
Tuesday's rating downgrade by Credit Suisse and with the stock
trading ex-dividend on Wednesday.
Ex-dividend factors knocked 1.01 points off the blue chip
index, with Amec <AMEC.L> and Next <NXT.L> also losing their
dividend attractions.
Platinum refiner Johnson Matthey <JMAT.L> lost 2.4 percent
after posting a 21-percent drop in first-half pretax profit due
to lower precious metal prices and a slowdown in automobile
sales. [].
United Utilities <UU.L> shed 1.5 percent after reduced
demand for water from recession-hit businesses and inflated
costs weighed on its first-half results. []
A raft of U.S. data is expected later in the session ahead
of the Thanksgiving holiday on Thursday, including initial
weekly jobless claims, October new home sales and the final
reading of the University of Michigan November consumer
sentiment numbers.
(Editing by David Cowell)
((harpreet.bhal@thomsonreuters.com; +44 207 542 4533;
Reuters Messaging:
harpreet.bhal.thomsonreuters.com@reuters.net))
