* FTSE 100 closes up 0.2 pct at 6,570.95 points
* Citigroup stays bullish, sees FTSE at 7,000 end-2013
* Barclays slumps 5.7 pct after capital hike
* GKN and ITV surge after their results beat forecasts
By Sudip Kar-Gupta
LONDON, July 30 Upbeat earnings from leading
companies nudged Britain's benchmark equity index higher on
Tuesday, enabling the market to offset a slump in Barclays
after the bank announced plans for a $9 billion capital
The blue-chip FTSE 100 index closed up 0.2 percent,
or 10.70 points, at 6,570.95.
Engineer GKN topped the leaderboard with a 6.5
percent rise after better-than-expected interim profits, while
media group ITV rose 6.3 percent after also beating
forecasts with its results.
Barclays, however, tumbled 5.7 percent after announcing
plans to raise 5.8 billion pounds ($8.90 billion) to strengthen
its capital position.
Sucden Financial trader Mike Mason said that while many
leading companies had beaten expectations with their results,
that had yet to feed through to the broader economy since
companies were not necessarily creating jobs.
Still, Citigroup European equity strategist Jonathan Stubbs
remained bullish on the FTSE 100, arguing investors should use
days when the market fell to buy up stocks on the cheap.
"We stick with our 'buy the dip' strategy and target the
FTSE at 7,000 at end-2013," he said.
UK banks' capital shortfall calculator:
HSBC OUTPERFORMS WEAKER BANKS
The blow to Barclays hit other domestic banks, with
part-nationalised lenders Royal Bank of Scotland and
Lloyds falling 2.5 percent and 1.5 percent respectively
due to worries that they may also have to raise more capital.
"The Barclays news is depressing the banking sector somewhat
as fears spread about balance sheet issues," said Sucden
However, leading global bank HSBC rose 1.1 percent
to add the most points to the FTSE 100, and Hartmann Capital
trader Basil Petrides said HSBC had benefited from investors
switching out of Barclays and into HSBC.
"It's better to go into a company with a far stronger
capital position, such as HSBC," he said.
The FTSE 100 hit a 13-year high of 6,875.62 points in late
May, but then fell to 5,897.81 points in June as expectations of
a gradual scaling-back of stimulus measures by the U.S Federal
Reserve caused an equities sell-off.
The Fed meets this week and investors will be looking for
more clues on when it might start withdrawing stimulus.
The FTSE 100 is still up 11 percent since the start of 2013,
but EGR Broking managing director Kyri Kangellaris said its
failure to recapture the highs of May meant the index would not
make much headway in the near term.
"The market is struggling to make new highs, which could be
a sign of a potential sell-off," he said.
($1 = 0.6515 British pounds)
(Additional reporting by Tricia Wright; Editing by Susan