* FTSE gains 0.6 percent
* Banks rise as ECB lending figures lessen finance concerns
* AstraZeneca gains on patent trial win in the U.S.
By David Brett
LONDON, June 30 (Reuters) - Britain's top shares gained in
midday trade on Wednesday, boosted by banks after the ECB
released figures showing a relatively low take-up of funding,
and AstraZeneca <AZN.L> surged after a U.S. drug patent was
upheld.
By 1108 GMT, the FTSE 100 <> was up 27.23 points, or
0.6 percent at 4,941.45, having closed down 3.1 percent on
Tuesday at its lowest close since Sept. 4, 2009.
"Yesterday's retest of levels at 4,898 may have formed a
double bottom which could help the FTSE to bounce higher from
here," said Joshua Raymond, market strategist at City Index.
"Any move higher, however, would need to clear through
resistance at 5,050 and if support levels of 4,898 fail to hold,
further selling pressure may open the doors for the FTSE to fall
lower towards the 4,630 support level."
Banks rose after the European Central Bank said it lent
banks 131.9 billion euros in three-month funds on Wednesday,
below expectations, which eased money market tensions and cooled
talk of stresses in the European banking sector.
[]
Barclays <BARC.L> and Lloyds Banking Group <LLOY.L> were the
top risers in the sector, up 3.1 and 2.7 percent respectively,
with Royal Bank of Scotland <RBS.L> up 2.0 percent.
The sector fell on Tuesday over worries about a potential
liquidity shortfall of more than 100 billion euros in the
financial system, with European banks set to repay 442 billion
euros ($545.5 billion) in emergency loans on Thursday.
Elsewhere, AstraZeneca <AZN.L> surged 8.9 percent after the
drugmaker won a patent trial in the United States involving its
blockbuster statin drug Crestor, leading several brokers to
upgrade ratings and target prices for the stock.
The news lifted sentiment in the sector, helping
GlaxoSmithKline <GSK.L> gain 1.4 percent.
BP BOUNCES
BP <BP.L> bounced 9 percent as investors picked up shares on
the cheap, and with traders citing vague speculation of a
possible takeover of the company resurfacing following recent
broker comment.
BP is down 52 percent since its oil spill, the worst U.S.
environmental accident, began in the Gulf of Mexico in
mid-April.
The season's first Atlantic hurricane is disrupting cleanup
of the massive oil spill, delaying plans to boost containment
capacity and threatening to push more oily water onshore.
[]
Essar Energy <ESSR.L> gained 3.3 percent, helped by recent
positive broker comment.
U.S. stock futures pointed to a firmer start on Wall Street
following sharp falls on Tuesday, as investors look to the ADP
June employment report, due at 1215 GMT, to provide clues for
the eagerly anticipated non-farm payrolls, due out on Friday.
June New York ISM data, due at 1230 GMT, and June Chicago
PMI data at 1345 GMT will also clarify the .
On the downside, Vodafone <VOD.L> shed 1.5 percent as
Goldman Sachs substantially lowered its estimates on the mobile
telecoms giant to reflect recent currency headwinds, austerity
pressures in Europe and mid-term competitive risks.
Man Group <EMG.L> was the blue chip top faller down 7.0
percent as the hedge fund manager lost its dividend attractions,
with ex-dividend factors also weighing on Alliance Trust
<ATST.L> and Compass Group <CPG.L>.
(Editing by Louise Heavens)
