By Rebekah Curtis
LONDON, May 15 (Reuters) - Britain's top shares index rose
by midday on Thursday, as results boosted BT <BT.L> and Cadbury
<CBRY.L>, but banks capped gains after Barclays <BARC.L> refused
to rule out a rights issue after posting a $2 billion writedown.
BT contributed most points to the index, gaining 3.7 percent
after the telecoms operator posted a rise in fourth-quarter
underlying core earnings, in line with forecasts, and said it
expected to deliver continued growth next year. []
Cadbury rose 5 percent after the confectionery company said
it expected strong first-half performance. The stock also
benefited from upbeat broker notes from Numis and Panmure.
By 1109 GMT, the FTSE 100 <> reversed earlier losses to
rise 10.6 points, or 0.2 percent, to 6,226.6 as the broader
European stock market traded flat.
Leading the losers' list, Barclays <BARC.L> shed 3.4 percent
after saying profits fell in the first quarter after it took a 1
billion pound writedown on assets tarnished by the credit
crunch, but it did not disclose the extent of its profit fall.
The bank also refused to rule out a rights issue.
[] []
HBOS <HBOS.L>, Lloyds TSB <LLOY.L> and Alliance & Leicester
<ALLL.L> lost between 1.2 and 2 percent. Royal Bank of Scotland
<RBS.L>, trading ex-rights, edged up.
"(The sector's) going to be a bit of a burden for the market
for some while. We have to resign ourselves to the fact that
that's one sector that we can't expect very much from," Mike
Lenhoff, chief strategist at Brewin Dolphin, said.
"We probably aren't going to go anywhere in the very short
term," he added. "The market is probably set to trade around
this level for a little while."
Elsewhere, Wall Street looked set to rise at the start on
Thursday with the focus on earnings from key retailers JC Penney
<JCP.N> and Nordstrom <JWN.N> along with tech company
Hewlett-Packard <HPQ.N>.
MINERS DRAG
Miners were also standout losers after recent gains and
after Indian-focused Vedanta Resources <VED.L> posted a 7.1
percent fall in annual underlying earnings per share despite
stronger output, reflecting a share issue and higher minority
interests. []
Vedanta dipped 1 percent, while BHP Billiton <BLT.L>, Rio
Tinto <RIO.L> and Antofagasta <ANTO.L> all shed between 0.7 and
1.6 percent. Some stocks in the sector have been trading at
record levels this week.
Xstrata <XTA.L> lost 0.9 percent. The miner bid nearly $400
million for Australia's Indophil Resources <IRN.AX>, which
rejected the offer and said it did not reflect the value of the
company. []
Oil stocks capped some of the index's losses, however, with
BP <BP.L> up 0.7 percent and its rival Royal Dutch Shell
<RDSa.L> rising 0.9 percent as U.S. crude oil prices recovered
towards $125 a barrel.
Brewer SABMiller <SAB.L> advanced 4.4 percent. The company
reported a 19 percent rise in annual earnings but said beer
volume growth in its current first-half would be affected by
high input costs and comparative figures. []
ITV <ITV.L> shed 3 percent after the broadcaster said its
turnaround plan was on track as it had outperformed the
television advertising market and increased audience share.
[]
Among mid-caps, DSG International <DSGI.L>, Europe's largest
specialist retailer, dropped 9.4 percent after announcing it
would slash its dividend and shut stores in an effort to turn
around the business.
(Additional reporting by Dominic Lau; editing by Sue Thomas)
