Reuters: Hot Stocks: Britain's FTSE extends rebound as miners bounce

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Britain's FTSE extends rebound as miners bounce Jun 27th 2013, 10:42 Thu Jun 27, 2013 6:42am EDT * FTSE 100 rises 0.4 percent * Gold and copper miners both helped by commodities' recovery * WPP, Smiths Group boosted by upgrades * Charts point to resistance around 6,200 By Alistair Smout LONDON, June 27 (Reuters) - Britain's top share index extended a rebound on Thursday from six-month lows, helped by strength in miners as worries over the pace of U.S. monetary stimulus withdrawal receded. Miners rose 1.2 percent, contributing the most points to FTSE 100 gains and bouncing off four year lows, pushed higher by a recovery in metal prices. Weak U.S. economic data weighed on the dollar, helping gold miners bounce, and comments from central bankers helped assuage market concerns that the Federal Reserve will soon reduce its monetary stimulus, which helped to support the copper price. By 1030 GMT, the FTSE 100 was up 21.86 points or 0.4 percent at 6,187.34, pushing above the 200 day moving average that it closed at on Wednesday and extending the recovery from Monday's closing low around 6,030. "We're having a bit of a respite... There's reason to believe that the timeline for the quantitative easing drawdown process will be stretched a little bit, which has helped sentiment," Alastair McCaig, analyst at IG Index, said. "But we'd have to get a little chunk further above the 200 day moving average to believe that we weren't going to once again drift back down." The highest individual riser was WPP, up 3 percent after being added to Bank of America/Merill Lynch's "most wanted" list. Smiths Group also rallied after positive broker comment, rising 2.2 percent with traders citing a UBS upgrade of the stock to "buy" from "neutral" as being behind the move. On the downside, International Airlines Group fell 1.6 percent in volume of 4.5 times its 90 day average after Spanish bank Bankia sold a stake of 12.1 percent in the company at 256 pence/share (3.01 euros/share), a discount of 3 percent on Wednesday's closing share price. From a technical point of view, the broader market rebound could face obstacles in extending gains further in the near term. "The FTSE has bounced 200 points off of that psychological 6,000 mark, so profit-taking is certainly a possibility, especially as we approach the 6,200-6,245 range. This was formerly a support area and could now turn into resistance," Fawad Razaqzada, technical analyst at GFT Markets, said. "But if and when the index clears this area... I wouldn't be surprised to see a speedy rally towards 6,400 as the bears rush to liquidate their short positions and fresh buyers emerge." (Additional reporting by David Brett; Editing by Gareth Jones) Link this Share this Digg this Email Reprints

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