FTSE buoyed by property firms; banks mixed

                                
 * FTSE 100 up 0.3 pct
                                
 * Capital Shopping Centres lifted by bid interest
                                
 * Domestically focused banks fall on euro zone debt fears
                                
 
                                
 By Tricia Wright
                                
 LONDON, Nov 25 (Reuters) - Britain's top share index rose on
Thursday, buoyed by property stocks led by Capital Shopping
Centres <CSCG.L> on bid interest in the group, while weakness
was seen among banks on nagging euro zone debt fears.
                                
 By 1220 GMT, the FTSE 100 <.FTSE> was up 17.45 points, or
0.3 percent, at 5,674.55, in thin volumes, with U.S. markets
closed for the Thanksgiving Day holiday. The index ended 1.4
percent higher on Wednesday.
                                
 Property stocks dominated the top of the blue-chip leader
board, after the largest U.S. mall-owner Simon Property <SPG.N>
flagged a potential offer for Capital Shopping Centres (CSC)
<CSCG.L>, sending CSC's shares up 10 percent.
                                
 Sentiment surrounding the sector was lifted, with Hammerson
<HMSO.L> up 6.3 percent, British Land <BLND.L> 3.1 percent
firmer, and Land Securities <LAND.L> adding 2.4 percent.
                                
 Banking stocks were mixed. Domestically-focused Royal Bank
of Scotland <RBS.L> and Lloyds Banking Group <LLOY.L> fell on
persistent concerns over the risk of contagion from Ireland to
other euro zone countries, off 1.2 percent and 0.3 percent
respectively.
                                
 But the sector was supported by sector heavyweight HSBC
<HSBA.L>, which put on 0.3 percent.
                                
 "Every two or three months we seem to have a macro issue
which gives the market a wobble and for a period of time it will
become the dominant feature," Paul Kavanagh, a partner at Killik
& Co, said.
                                
 "But those periods have become shorter and shorter over time
so the market tends to become a little bit more resilient to
these type of issues, and then it gets back to focusing on
earnings again," he said, pointing out that these remain upbeat.
                                
 Miners <.FTNMX1770>, which have come under pressure
recently, extended an advance from Wednesday, with Anglo
American <AAL.L> adding 1.7 percent, and Rio Tinto <RIO.L>, 1.5
percent firmer.
                                
 Upbeat broker sentiment aided Marks & Spencer <MKS.L>, up 2
percent, with Arden Partners raising its rating on the shares to
a "buy" from "neutral", citing supportive trading conditions.
                                
 Brightening the mood, a survey by the Confederation of
British Industry showed that British retail sales growth
accelerated in November, with retailers anticipating demand will
hold firm in the crucial Christmas shopping season.
                                
 Also supporting the market were comments from Bank of
England Governor Mervyn King, testifying to the House of Commons
Treasury Select Committee along with other Monetary Policy
Committee members, reiterating the views of the November
inflation report. [ID:nKING]
 (Editing by Jon Loades-Carter)