* FTSE 100 up 0.4 pct, set for best close in nearly 3 months
* Barclays, Unilever results disappoint, insurers impress
* Bank of England rate decision due at 1100 GMT
By Simon Falush
LONDON, Aug 5 (Reuters) - Gains in Britain's top share index
from insurers and energy, boosted by strong results, were
tempered on Thursday by disappointment over the results of other
big name stocks, including Barclays <BARC.L>.
Investors are waiting for an interest rate decision at 1100
GMT but it is a near certainty the Bank of England will not
change its monetary policy stance. []
By 1022 GMT, the FTSE 100 <> was 23.31 points, or 0.4
percent, higher at 5,409.27 after it ended 0.2 percent lower on
Wednesday. It was on track to post its highest close in nearly
three months.
Insurers were in strong demand, with Aviva <AV.L> the star
FTSE 100 performer, up 7.7 percent while RSA Insurance Group
<RSA.L> gained 3.6 percent, after both companies beat profit
forecasts in their first-half results. []
[]
Also among financial stocks, Schroders <SDR.L> added 3.7
percent after its profit rose, helped by cost cuts, and the
company said it was confident about its future prospects.
"It has been a positive earnings season and there have been
few significant disappointments," said Graham Secker, European
analyst at Morgan Stanley.
"The concerns for about the U.S. and global economic outlook
will dissipate and results are underpinning expectations," he
said, adding that a 5,800 target for the FTSE 100 at year end
looks achievable.
Not all results pleased investors. Barclays shares dipped 2
percent as analysts said its investment bank performance was
resilient but uninspiring, costs rose faster than expected and
Spanish bad debts remain a worry.
Results from consumer goods giants Unilever <ULVR.L> also
disappointed, as it narrowly missed sales forecasts and warned
of rising pressure from its rivals. Its shares slipped 4
percent.
Aerospace electronics group Cobham <COB.L> was the top
blue-chip faller, off 5.5 percent after it said the outlook was
uncertain as it posted a 2 percent rise in first-half profit.
"There have been some strong second-quarter earnings but
retailers have warned that we have not yet seen the fallout from
the austerity packages and some investors are worried that
recovery around the world seems to be petering out," said David
Buik, a senior partner at BGC Partners.
Underlining the mixed fortunes of companies on the bourse,
shares in precious metals miners Randgold <RRS.L> and Fresnillo
<FRES.L> were both down about 4 percent, hit by a warning of a
production fall and a broker downgrade, respectively.
[]
Energy stocks were a major support for the index, with BP
<BP.L> up 2.1 percent after it said it was close to subduing its
ruptured Gulf of Mexico oil well. Peer Royal Dutch Shell
<RDSa.L> was up 0.6 percent.
Technical levels were also in focus.
"The key level for the FTSE 100 remains 5,435 which is the
61.8% retracement of the down move from this year's high to this
year's low," said Michael Hewson, market analyst at CMC Markets.
Severe UK budget cuts and the possibility of slower growth
ahead will force the Bank of England to wait until the second
quarter of 2011 to raise interest rates, according to a Reuters
poll of 61 economists. []
The European Central Bank will also make its latest interest
rate announcement at 1145 GMT on Thursday, with no change
expected either.
No important British economic data is due to be released on
Thursday, so investors' attention will be on the latest U.S.
weekly jobless claims, due at 1230 GMT ahead of the closely
watched non-farm payrolls due on Friday.
(Editing by Karen Foster)
