CORRECTED - FTSE hits 4-wk high; JP Morgan results lift mood

Thu Jul 16, 2009 12:39pm EDT
 
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(Corrects FTSE closing figure in para 2)   
 * FTSE 100 up 0.35 pct, set for best week since March
 * JP Morgan results boost banks
 * Miners lose ground but oils up
 * Defensives well-bid
 * Earnings from U.S. firms Google, IBM eyed 
 By Simon Falush
 LONDON, July 16 (Reuters) - Upbeat results from JP Morgan boosted banks
while energy and pharmaceutical stocks also gained, leading Britain's top share
index to close at a one-month high, up for a fourth session on Thursday.
 The index was trading in slightly negative territory in early trade but the
JP Morgan results which were announced around midsession lifted the FTSE 100
.FTSE which closed 0.35 percent, or 15.38 points up at 4,361.84.
 The index shrugged off weak U.S. factory activity data which hit stocks on
Wall Street; the FTSE 100 is up 5.7 percent on the week and is set for its best
weekly performance in four months.
 Investors will look to second-quarter results from IBM (IBM.N) and Google
(GOOG.O) after U.S. markets close for more clues on the corporate outlook and
whether shares can continue their upward trajectory.
 "It all depends on how good the results from IBM and Google are," said Nick
Serff, analyst from City Index. "The results this week have been good and more
positive results should see consolidation of the gains."
 Citigroup (C.N) General Electric (GE.N) and Bank of America (BAC.N) report
on Friday.
 Banks were the biggest driver of gains, continuing the bull run from the
last couple of sessions following the results from JP Morgan.
 HSBC (HSBA.L), Barclays (BARC.L) and Lloyds Banking Group (LLOY.L) added
between 0.6 and 1.7 percent.
 Among other financials, Schroders (SDR.L) climbed 3.3 percent, after
Citigroup raised the fund firm to "buy" from "sell". 
 
 ENERGY UP
 Energy stocks were also among stocks in positive ground, with crude oil
stable above $61 per barrel CLc1.
 Heavyweights Royal Dutch Shell (RDSa.L) and BP (BP.L) added 0.5 and 0.9
percent respectively.
 Oil services company Petrofac (PFC.L) was the top riser, gaining 5.3 percent
after it said its Petrofac Emirates unit, in partnership with GS E&C, was
awarded a $2.1 billion Abu Dhabi integrated gas development contract.
 But mining firms took the most points off the index as doubts still hovered
over the demand outlook for metals. Anglo American (AAL.L), Kazakhmys (KAZ.L)
and Rio Tinto (RIO.L) lost between 0.6 and 2.3 percent.
   UK software firm Autonomy (AUTN.L) was the biggest faller on the index,
down 8.6 percent, as analysts said although the firm reported second-quarter
revenue which was in line with expectations, it missed a number of top-end
estimates, and the market expected more from its outlook.
 Risk appetite, while slightly improved, was still fragile, leading investors
to move into defensive pharmaceutical and tobacco stocks.
 AstraZeneca (AZN.L) and Shire (SHP.L) added 1.5 and 0.5 percent,
respectively, while British American Tobacco (BATS.L) gained 1.5 percent and
Imperial Tobacco (IMT.L) was up 1 percent.
 (Reporting by Simon Falush)

 

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