* FTSE 100 gains 0.3 percent, rebounds from 5-week lows
* Recovery comes from technical support at 200-day moving
* EM-exposed stocks lead, but concerns remain
By Toni Vorobyova
LONDON, Jan 28 Britain's top share index edged
higher on Tuesday, propped up by a key technical support after
it fell for five straight sessions, with companies exposed to
emerging markets cheered by easing tensions there.
Emerging-market assets steadied after a three-day slump,
reviving confidence in global risk assets and reassuring
investors worried that companies will be hit by adverse exchange
rate moves, falling demand and increased competition.
Aberdeen Asset Management, which invests around a third of
its equities funds and 14 percent of its fixed-income portfolios
in emerging markets, led the FTSE gainers, rising 3.4 percent
Miners, which rely heavily on demand from emerging markets
like China, also did well. Rio Tinto rose 2.3 percent
and Anglo American added 1.7 percent.
The broad FTSE 100 was up 21.88 points, or 0.3 percent at
6,572.54 points, rebounding from technical support at the
200-day moving average around 6,556.64 points.
Volumes, however, were relatively light, with investors
cautious ahead of this week's Federal Reserve meeting. All eyes
will be on whether the Fed pushes ahead with plans to trim its
quantitative easing - a move which could further hit
liquidity-reliant emerging markets.
"The 200-day moving average (on FTSE) coupled with rising
trend line support from the June 2012 lows is providing a decent
buy-on-dips level," said Brenda Kelly, an analyst at IG Markets.
"Clearly, the jury is out on whether this current bounce is
merely a relief rally ahead of the FOMC statement tomorrow,
where the consensus expectation is for an additional shaving of
$10 billion to the current QE programme."
The FTSE - whose blue chips on average make around a third of
their sales outside of Europe and North America - has fallen 4.2
percent in the past five sessions, hitting five-week lows and
underperforming other European bourses.
In addition to emerging-market concerns, investors have been
worried about the 2013 earnings season and whether it will
deliver profits strong enough to justify relatively elevated
So far, the signals have been mixed. Fresnillo fell
2.9 percent on Tuesday, bucking the general strength in miners,
after reporting a fall in gold production.
Chip producer ARM, meanwhile, fell 2.4 percent after
Apple reported a drop in iPhone sales. ARM licenses
chips for use in Apple products.
The spots of weakness have put investor focus on choosing
individual shares rather than betting on the whole market.
"We've been underweight emerging markets from the end of
last year, and continue to maintain that position ... We are
positive about the global growth story and at the moment we see
greater value in playing that through developed markets," said
Oliver Wallin, investment director at Octopus Investments.
"Our choice of preference within Europe is for stock pickers
and ... UK fits within our European views."