* FTSE up 0.3 pct, investors uncertain, choppy trade
* Miners, energy fall as commodities wane
* GlaxoSmithKline higher on recommended drug approval
By David Brett
LONDON, Aug 12 (Reuters) - Britain's top shares rose by
midday on Thursday, with commodity stock weakness outpaced by
gains in defensives, led by drugmaker GlaxoSmithKline after U.S.
authorities recommended approval of its Potiga epilepsy drug.
By 1113 GMT, the FTSE 100 <> was up 20.55 points or 0.4
percent at 5,265.76, having hit its lowest close in three weeks
on Wednesday when it fell 2.4 percent to 5,245.21.
Trade was choppy, however, as investors remained wary of the
wider economic malaise, with the index fluctuating between a
high of 5,271.22 and a low of 5,224.16
"Investors remain deeply cautious about the short-term
prospects for the markets and for the global economy after the
revised outlook from central banks in UK and across the water,"
said Giles Watts, head of equities at City Index.
Miners <.FTNMX1770> fell as base metal prices remained in
the doldrums on worries over the outlook for demand.
Eurasian Natural Resources <ENRC.L> dropped 2.1 percent, but
precious metal miners Rangold Resources <RRS.L> and African
Barrick Gold <ABGL.L> rose 0.8 and 1.0 percent, respectively, in
line with strength in gold on investor safe-haven buying.
India-focused mining group Vedanta Resources <VED.L> fell
3.7 percent on news it was in talks to buy assets or take a
multibillion-dollar equity stake in British oil and gas
exploration company Cairn Energy <CNE.L>. []
Cairn Energy gained 0.8 percent but other energy related
stocks fell as demand for crude <CLc1> tailed off. BP <BP.L> and
Royal Dutch Shell <RDSa.L> each shed 0.2 percent.
GLAXO GAINS ON DRUG APPROVAL
GlaxoSmithKline <GSK.L> added 1.5 percent after U.S.
advisers recommended approval of Potiga, a new epilepsy drug
developed with Valeant Pharmaceuticals <VRX.N>.
Dominic Valder, an analyst with Evolution Securities, said
the product itself, with potential peak annual sales of $500
million, is not significant enough to change Glaxo's investment
thesis, but the success emphasises Glaxo is passing its patent
cliff and returning to growth.
The drugmaker led a number of perceived defensive stocks
higher as investors' risk appetite waned.
Glaxo peer AstraZeneca <AZN.L> rose 0.7 percent, while
consumer goods group Unilever <ULVR.L> climbed 1.4 percent and
British American Tobacco <BATS.L> rose 1.0 percent.
Highlighting uncertainty among investors, insurers were
mixed, with Prudential <PRU.L> up 1.1 percent after it reported
forecast-beating half-year profit. []
Old Mutual <OML.L>, however, was among the worst performers
on the FTSE 100, down 1.2 percent after Goldman Sachs cuts its
rating on the stock, citing weakness in the South African
economy.
Mobile telecommunications firm Vodafone <VOD.L> was a strong
performer, up 2.5 percent as it clawed back losses from the
previous session.
In terms of valuations, the UK benchmark carried a one-year
forward price-to-earnings of 10.65 versus a 10-year average of
14.98, DataStream showed.
The FTSE 100 is looking cheaper than Germany's DAX <>
and the U.S. S&P 500 <.SPX>, which had a one-year forward P/E of
11.22 and 13.21, respectively.
Investors will watch out for July's U.S. import price index
and weekly U.S. jobless figures, which are both due for release
at 1230 GMT, for further clues on the health of the world's
largest economy.
(Editing by Simon Jessop)
