Reuters: Hot Stocks: Smiths rises as Britain's FTSE extends rebound early on

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Smiths rises as Britain's FTSE extends rebound early on Jun 27th 2013, 07:50 Thu Jun 27, 2013 3:50am EDT * FTSE 100 rises 0.3 percent to 6,181.11 * FTSE Fear gauge falls from one-year highs * Smiths tops risers list after UBS upgrade * ICAG falls after Bankia placing By David Brett LONDON, June 27 (Reuters) - Britain's top shares rose in early deals on Thursday as the index extended a bounce off six-month lows with engineering company Smiths Group leading the gainers, boosted by a bullish note from UBS. By 0733 GMT, the FTSE 100 was up 15.63 points or 0.3 percent at 6,181.11, extending the recovery from Monday's closing low around 6,030 after weak U.S. economic data and comments from central bankers helped assuage market concerns that the Federal Reserve will soon reduce its monetary stimulus. The soothing words have seen the FTSE volatility index - a crude gauge of investor fear - fall from one-year highs hit on Monday. "Last week's declines of around 5 percent (in the FTSE) make equity valuations even less demanding while U.S. economic data continues to provide support," Adam Seagrave, trader at Saxo Bank, Said. "All of which has seen new longs enter the market and a feeling amongst many traders that all the major bourses can claw back more of the previous weeks' declines." Rebounding stock markets continue to boost financial services firms - whose profits and balance sheets tend to benefit from rising asset prices - with asset manager Aberdeen Asset Management up 2.4 percent. Top gainer was Smiths Group which rallied 2.6 percent after UBS upgraded the stock to "buy" from "neutral", according to traders. UBS said in a note the upgrade comes after around a 7 percent decline in Smiths' share price since initial media reports that the company is negotiating a potential sale of Medical to CareFusion, and UBS believes there is sufficient upside to its 1,400 pence target price to justify a "buy" rating. On the downside, International Airlines Group fell 1.6 percent 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. "6,200 could serve as resistance/pause after a 3.3 percent rally. I still want to see a break of 6,200, maybe even 6,250 to be sure, in order to negate some of the more bearish-looking candles on the longer term graphs," Mike van Dulken, head of research at Accendo Markets, said. (Reporting by David Brett; editing by Stephen Nisbet) Link this Share this Digg this Email Reprints

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