Reuters: Hot Stocks: Britain's FTSE recovers, supported by technicals

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Britain's FTSE recovers, supported by technicals Jun 17th 2013, 11:07 Mon Jun 17, 2013 7:07am EDT * FTSE 100 up 0.9 percent * Rise follows four weeks of losses * Technical charts show scope for gains after support level held By Toni Vorobyova LONDON, June 17 (Reuters) - Britain's top share index edged higher on Monday, with some investors seeing value in the market after a four-week sell off, and with technical charts suggesting a brightening outlook. The rebound came after four straight weeks of losses - the FTSE 100's longest down run 14 months - driven by concern that the U.S. Federal Reserve could become the first major central bank to scale back the plentiful stimulus that has supported global equities over the past year. Analysts said that markets were likely to remain jittery through the Fed's policy meeting on Tuesday and Wednesday , but with the British blue chip index down over 5 percent in the past month, they pointed to attractively valued investment opportunities among individual stocks. Resolution added 3.5 percent after JPMorgan raised its price target on the stock and highlighted its attractive dividend yield, while consumer health and hygiene group Reckitt Benckiser gained 2.6 percent following an upgrade from Citi saying the stock was undervalued. "We see scope for buying on weakness ... and look to re-test recent highs as we seem to have found support close to current levels," said Atif Latif, director of equities and derivatives trading at Guardian Stockbrokers. "We see value in banks, telecoms and miners as the most to gain from a push back up." The FTSE 100 was up 54.79 points, or 0.9 percent, at 6,393.05 points by 1038 GMT, extending its recovery from a five-month intra-day low of 6,205.71 points set last Thursday. "It closed significantly above that level - that to me looks like a rejection at that level. So in the near term we should be going up. From here I wouldn't be surprised if we reach 6,550 at least - it could take a few days or at most a couple of weeks," said Fawad Razaqzada, technical analyst at GFT. Analysts said the possibility of a pick up in mergers and acquisitions was another reason to buy equities. Heavyweight Vodafone added 2.7 percent, mirroring a buoyant European telecoms sector, following a media report of a bid for Telefonica from AT&T, even though the Spanish company said it had not been approached. (Editing by Louise Heavens) Link this Share this Digg this Email Reprints

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