* FTSE up 0.9 percent, rebounding after sharp falls
* FTSE All Share near 200-day moving average, RSI oversold
* Energy stocks rise, Credit Suisse upbeat on oils
By David Brett
LONDON, March 17 (Reuters) - Britain's top share index
bounced back on Thursday, with miners in the lead, as technical
indicators signalled stocks were heading towards being oversold.
By 1214 GMT, the FTSE 100 index 1.FTSE> was 48.47 points, or
0.9 percent, higher at 5,646.70.
The index has had more than 50 billion pounds ($80 billion)
wiped off its value since Japan suffered a huge earthquake on
Friday.
"Technically we were due a bounce. In the short-term we are
nearing oversold territory with the FTSE All Share reaching its
200-day moving average (around 2,904), which in theory should be
a support level," Ian Williams, analyst at Altium Securities,
said.
"Asian markets, having had the big sell off in the U.S.,
rallied into the close and the more violent movements in the
currency markets we saw intraday seemed to have settled down as
well, so it's probably not much more than an oversold bounce."
Energy stocks <.FTNMX0530> were top performers, driven by a
2.5 percent rebound for Royal Dutch Shell <RDSa.L>.
Credit Suisse raised its estimates and target prices across
the Global sector based on strong crude price forecasts.
Brent crude <LCOc1> traded 1.5 percent firmer, as investors
nervously watched tensions in the Middle East as tensions in
Bahrain escalated. []
Heritage Oil <HOIL.L> gained 7.9 percent, after the
Financial Times reported the exploration company rejected a 1.2
billion pound ($1.9 billion) takeover approach from a Middle
Eastern company.
MINER GAINS
Miners <.FTNMX1770>, seen as benefitting once Japan begins
to rebuild following its devastating earthquake, advanced
against a backdrop of firmer metals prices. BHP Billiton <BLT.L>
rose 2.3 percent.
The sector is down almost 12 percent in 2011, and traders
said other technical indicators pointed to the FTSE 100 as a
whole looking cheap.
"The FTSE at the moment is ridiculously oversold. RSIs (
relative strength index) are running very low, signalling an
oversold situation," a London-based trader said.
The FTSE relative strength index is trading around 29. A
reading below 30 suggests a market is oversold.
Elsewhere, Vodafone <VOD.L> climbed 2.3 percent, boosted by
an upgrade to "neutral" by Evolution after an investor day.
Meanwhile, on the downside, Insurer Legal & General <LGEN.L>
fell 1 percent to 110 pence after results, reversing earlier
gains, and underperformed a 1.5 percent rise for the European
insurance sector <.SXIP>. []
"We would be buyers (of Legal & General) at the 100 pence
level and would expect to see a bounce back to 130 to 150 pence
from these levels," a trader said.
U.S. stock index futures pointed to a higher opening on Wall
Street on Thursday, rebounding from falls in the previous
session.
U.S. inflation figures are due at 1330 GMT, together with
the latest weekly jobless claims, while March's Philly Fed index
and February lead indicators will be released at 1500 GMT.
(Additional reporting by Tricia Wright; Editing by Elaine
Hardcastle)
($1=.6221 Pound)
