* FTSE 100 closes up 1.2 pct at 6,387.37 points
* Record high on S&P and robust China data buoys sentiment
* Citi upgrade boosts EasyJet
* FTSE's near-term upside seen capped near 6,500 points
By Sudip Kar-Gupta
LONDON, April 10 Britain's benchmark share index
rose for the third consecutive session on Wednesday, as a surge
in U.S. stock markets and robust Chinese data buoyed sentiment
and boosted bank and mining stocks.
Some traders said the blue-chip FTSE 100 had the
scope to gain a further 100 points before levelling out at
around the 6,500 level, and that it could then trade sideways in
a roughly 200 point range until the end of August.
The FTSE 100 closed up 1.2 percent, or 74.16 points higher,
at 6,387.37 points.
Its advance, which accelerated as the U.S. S&P 500
hit a record high, pushed the index back towards a 5-year peak
of 6,533.99 points reached last month, although it failed to
close above a 6,400 point level seen as key by some traders.
Banking and mining stocks - referred to as "high-beta"
shares that often outperform a rising market or underperform a
falling market - dominated much of the FTSE's leader board.
UK bank Barclays rose 4.3 percent to add the most
points to the FTSE, which traders attributed to a bullish note
on the sector from analysts at Sanford C. Bernstein.
"If you want to make money at the moment, you've got to be
in the banks," said Terry Torrison, managing director at
Monaco-based McLaren Securities.
Torrison said investors should look to add to equity
positions on days when the market fell, rather than sell out at
a profit on days when it rallied. "The bias is to the buyside."
EASYJET FLIES HIGH
Low-cost airline EasyJet was the best-performing
FTSE 100 stock as it surged 6.7 percent after investment bank
Citi raised its rating on the stock to "buy" from "neutral."
Mining stocks also performed strongly, with Vedanta
rising 5.7 percent after data from China, the world's top metals
consumer, showed a bigger-than-expected rise in imports.
Hartmann Capital trader Basil Petrides said he would look to
buy mining stocks such as Rio Tinto for relatively cheap
prices on days when they fell, and would only hold them for
around 2 weeks before selling them back at a profit.
"I would look to buy the miners on the dips but only for a
short-term period," he said.
JN Financial derivatives trader Rick Jones also said he
would look to buy the FTSE 100 index on the dips, but added:
"We do believe the upside has been capped at 6,500, and I would
expect sideways trading between 6,150 and 6,500 between now and
(additional reporting by Toni Vorobyova; Editing by Ruth