STOCKS NEWS UK SMALL-Gem higher on diamond hopes

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11:36GMT 11May2009-Gem higher on diamond hopes

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Shares in Gem Diamonds (GEMD.L) rise 15 percent, building on Friday's 20 percent gain, as investors react to a recovery in demand for rough diamonds with market conditions looking more positive according to analysts.

"They (Gem) have just raised money and we know diamond prices are getting a bit better. The share was pretty depressed so it's not all that surprising it should bounce," said Desmond Kilalea, a diamond analyst at RBC Capital Markets.

African Minerals (AMIq.L), which has diamond assets in Sierra Leone, also has support, rising by 18 percent.

"The whole sector's becoming in demand. The ones that produce look like they're getting some attention because people now hear that rough diamond prices have been reasonably strong over the past couple of months," said Kilalea. Reuters messaging rm://matthew.scuffham.reuters.com@reuters.net

11:02GMT 11May2009-Raymarine off high as sector retreats

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Shares in leisure yacht electronics supplier Raymarine (RAY.L) fall back 8.5 percent from last Friday's six-month high, but remain more than 90 percent higher than a month ago.