* FTSE 100 index rises 0.2 percent, hits 1-month high
* Miners, banks gain on pick up in economic recovery
* Morrisons top gainer on second-half outlook
By Atul Prakash
LONDON, Sept 12 Britain's top share index edged
higher to set a one-month high on Thursday, with mining shares
gaining on expectations of an improvement in industrial metals
demand and financials stocks rising on a better economic
At 0742 GMT, the blue-chip FTSE 100 index was up
10.23 points, or 0.2 percent, at 6,598.66 points after rising to
a one-month high of 6,600.45.
"The last two weeks have shown that volumes have picked up
and investors are returning after the summer break. Miners and
banks have been favourites amongst clients, with Chinese data
helping the mining sector this week," Amrit Panesar, senior
trader at Accendo Markets, said.
The UK mining index rose 0.4 percent, while
banks were up 0.2 percent on expectations that a
recovery in the global economy would help cyclical shares such
as financials and industrials.
"I remain on the bid side of the market," Mike Jarman, head
of equity strategy at H2O Markets, said.
"I'm showing keen interest in financials due to continued
supply of liquidity, and in basic resources as the Chinese hard
landing is averted."
The UK mining index has surged more than 20 percent since
July after falling in the previous two quarters, with recent
positive data from China, the world's top metals consumer,
suggesting economic momentum in the country is gathering pace.
Among individual sharp movers, Morrisons rose 4.8
percent to top the FTSE gainers' list after Britain's No. 4
grocer, whose first-half profit fell 10 percent, predicted an
improvement in second-half sales performance and said it would
have 200 convenience stores by the end of 2014.
"It is not all negative in the update, as management has
outlined its future capital plans which will see a significant
reduction in capital expenditure and new superstore space in the
medium term," Shore Capital said in a note.
(Editing by Stephen Nisbet)