* FTSE 100 up 0.6 pct
* Sainsbury top blue-chip faller
* Housebuilders boosted by budget statement
By Tricia Wright
LONDON, March 23 (Reuters) - Strong miners helped move
Britain's top shares higher on Wednesday, on a budget day that
brought a mixed outlook for UK corporates.
J Sainsbury <SBRY.L> fell sharply after a downbeat trading
update, while sector peers firmed after the budget, as did
housebuilders which got a first-time property buyers boost,
while North Sea-focused oil firms were hit by a tax rise.
The FTSE 100 <> closed up 33.17 points, or 0.6 percent,
at 5,795.88, having ended down 0.4 percent on Tuesday.
Pre-budget, the spotlight fell on Sainsbury, the most traded
stock across Europe at 421 percent of its 30-day average, with
the FTSEurofirst 300 <> trading only 84 percent of its
30-day average.
The grocer topped the blue-chip fallers' list, off 5.4
percent, after it missed fourth-quarter sales forecasts, stoking
fears of a downturn in consumer spending. []
But money managers saw opportunities among UK consumer
stocks, which have been poor performers in recent months.
Jeremy Thomas, chief investment officer UK equities at fund
manager RCM, who oversees about 2 billion pounds ($3.27
billion), has been gradually adding new investments in selected
companies such as Tesco <TSCO.L>, "which is now trading on a
lower valuation than at any time in its history".
Thomas said that while profit expectations for more cyclical
retailers such as Next <NXT.L> may continue to fall, "if their
share prices decline much further, this will be a chance for
long term investors to buy good franchises at terrific prices".
Shares in Tesco firmed 0.3 percent, while Next advanced 1.5
percent ahead of its full-year results on Thursday, with traders
optimistic about its online sales.
FUEL CUT
Whilst Sainsbury's results highlighted challenges currently
facing the UK consumer, help with soaring petrol prices offered
by finance minister George Osborne in his budget for the 2011/12
fiscal year was welcomed by the market.
Fuel duty is to be cut by 1 penny per litre, taking effect
in petrol stations from 1800 GMT tonight. []
"The petrol duty is a big headline grabber. It's a bit of a
relief to everyone, and will be a good shock for consumer
confidence... so you can read across that that's good for the
economy," Joe Rundle, head of trading at ETX Capital, said.
Also aiding investor sentiment, he said, was the fact the
Bank of England's Monetary Policy Committee maintained its 6-3
split in favour of keeping rates on hold this month.
On the second tier, UK housebuilders received a boost from
the budget statement, aided by news that from this year's bank
levy the government will fund a 250 million pounds commitment to
first-time buyers.
Redrow <RDW.L>, Barratt Developments <BDEV.L> and Taylor
Wimpey <TW.L> added 2.5 to 3.3 percent.
North Sea-focused oil firms, however, lost out, as Osborne
raised the supplementary tax charge levied on oil and gas
production in the UK to 32 percent from 20 percent.
Midcap Enquest <ENQ.L> sagged 12.5 percent.
Back among the risers, Kazakh miner Eurasian Natural
Resources <ENRC.L> climbed 3.5 percent after it met forecasts
with full-year underlying profit that more than doubled.
Sector peers were in demand as copper prices rose, and after
mining executives said reconstruction in Japan after the
earthquake would be bullish for metals.
(Additional reporting by Simon Jessop; Editing by Mike Nesbit)
($1=.6108 pounds)
