* FTSE 100 up 0.6 pct, bounces off oversold level
* Investors relieved as Russia pulls back troops
* Sentiment remains fragile amid geopolitical worries
* Synthomer tops FTSE 350 risers after dividend hike
By Francesco Canepa
LONDON, Aug 11 British shares snapped a
three-day losing streak on Monday as traders saw Russia's
decision to pull back troops from near the Ukrainian border as a
sign of easing tensions between Moscow and Kiev.
Late on Friday, Moscow's Defence Ministry said it had ended
military exercises in southern Russia, which the United States
had criticised as a "provocative" step amid the Ukraine crisis.
Talk of a ceasefire in Ukraine, however, evaporated as Kiev
government forces kept up an offensive to crush pro-Russian
Fears that Russia could invade eastern Ukraine and
tit-for-tat sanctions between Moscow and the European Union have
knocked stock markets over the past month. They compounded
worries about conflicts in the Middle East, weak European
economic data and the prospect of a tighter U.S. monetary
"It's very early to start celebrating and you've still got
the negative effects of the sanctions, which are likely to
filter through over the coming months," Michael Hewson chief
market analyst at CMC Markets UK, said.
"But anything that ratchets down the tension is always going
to be an opportunity to take profit on the shorts and maybe
doing a little bit of bargain hunting."
The FTSE 100 was up 36.76 points, or 0.6 percent, at
6,604.12 points, bouncing from oversold territory after a 3.3
percent fall over the previous two weeks.
The broader FTSE 350 index, which also includes
small caps, was also up 0.6 percent after falling for three
Mid-cap chemical firm Synthomer was the top riser
on the FTSE 350, up 5 percent, as it increased its interim
dividend to 3 pence from 2.4 pence a year earlier.
"One positive in the announcement is confirmation of a more
generous dividend policy," analysts at N+1 Singer wrote in a
"A special (dividend) would also be considered if the Group
ends up with surplus cash, which it is likely to given the
current land disposal process in Malaysia."
(Reporting By Francesco Canepa)