* FTSE 100 gains 0.3 percent
* Miners rebound after 5.3 percent drop in a week
* ARM weaker following poor iPhone sales
* Index in technically "oversold" conditions
By Alistair Smout
LONDON, Jan 28 Britain's top share index
steadied on Tuesday after five straight sessions of falls, with
miners and financials rebounding as concerns over emerging
markets began to ease.
The stabilisation of a recent emerging market sell-off that
has roiled global stock markets in the last week offered a
chance for some of the shares that have been worst hit to rally
off their lows.
The FTSE 100 index has lost 4.2 percent since last
Tuesday, and posted five straight sessions of losses for the
first time since December 2013. The index only saw five straight
down days on one other occasion in 2013, in March.
Miners gained 0.9 percent on Tuesday and
accounted for many of the top blue chip risers, having dropped
5.3 percent since the beginning of last week, supported by a
firmer Australian dollar.
The week-long drop in the sector was triggered by weaker
than expected manufacturing survey data out of China, the
world's biggest metals consumer.
"We're seeing some stabilisation, and in Australia, their
currency is holding up, which is going to be a help for the
miners today," said Will Hedden, sales trader at IG.
"They suffered from the emerging market theme, as well as
the trigger of weak China numbers, so it's no surprise to see a
little bit of bargain hunting."
Fund manager Aberdeen Asset Management, which has a
very high exposure to emerging markets and is down 20 percent
already this year, was up 2.2 percent, rallying off of
three-month lows to be the top individual gainer on the FTSE
Top faller was chip producer ARM, which dropped 2.7
percent after Apple reported a drop in iPhone sales,
sending shares as much as 8 percent lower. ARM licenses chips
for use in Apple products.
The FTSE 11 was 20.05 points higher, up 0.3 percent, at
5,670.71 at 0838 GMT, with technical signals also pointing to a
rebound after the week's steep falls.
The sell-off has seen the index drop from technically
overbought conditions, according to the seven-day relative
strength indicator (RSI), into oversold territory in less than a
"Technical indicators have fallen to relatively oversold
levels and it would not be at all surprising if some traders
were tempted in at current levels," Bill McNamara, technical
analyst at Charles Stanley, said.
"In the near term, however, it looks like we should continue
to expect high levels of volatility."