* FTSE 100 up 0.2 pct
* RSA buoyed by Bank of America Merrill Lynch upgrade
* Antofagasta falls after posting lower H1 profits
By Sudip Kar-Gupta
LONDON, Aug 26 Britain's top equity index rose
on Tuesday, boosted by expectations of new economic stimulus
measures from the European Central Bank, while a broker upgrade
lifted insurer RSA.
The blue-chip FTSE 100 index was up by 0.2 percent,
or 12.76 points, at 6,788.01 points by the middle of the trading
The London market was closed on Monday, and its gains on
Tuesday saw it play catch-up with an advance seen in Europe in
the previous session after ECB President Mario Draghi raised
expectations of new stimulus measures, such as quantitative
easing (QE), in a speech late on Friday.
"We're just playing a bit of catch-up with the rest of
Europe. If QE is on the way in Europe, it should help stock
markets across the board," said Terry Torrison, managing
director at McLaren Securities.
RSA was the best-performing FTSE 100 stock in percentage
terms, rising 2.2 percent after Bank of America Merrill Lynch
raised its rating on RSA to "buy" from "neutral."
However, shares in copper miner Antofagasta fell
3.8 percent after Antofagasta posted an 11.5 percent decline in
first-half core profits.
Some traders said the FTSE looked set for more gains in the
The index is up by some 4 percent from a low hit more than
two weeks ago following a sell-off triggered in June by the
worries over the crisis in Ukraine, where Kiev forces have been
fighting pro-Moscow separatists.
"The broader technical picture is now implying that upward
momentum is such that further near-term gains have become a
realistic expectation," said Bill McNamara, technical analyst at
brokerage Charles Stanley.
(Additional reporting by Tricia Wright; Editing by Hugh Lawson)