* FTSE 100 up 1 pct, bounces off oversold level
* Investors relieved as Russia pulls back troops
* Geopolitical worries keep sentiment fragile
* Synthomer tops FTSE 350 risers after dividend hike
By Tricia Wright
LONDON, Aug 11 British shares snapped a
three-day losing streak on Monday after Russia said it would
pull troops back from near the Ukrainian border, which investors
took to mean a confrontation between Moscow and Kiev was less
Late on Friday, Moscow's Defence Ministry said it had ended
military exercises in southern Russia which the United States
had criticised as "provocative".
Fears that Russia could invade eastern Ukraine and
tit-for-tat sanctions between Moscow and the European Union have
weighed on stock markets over the past month. That compounded
worries about widening conflict in the Middle East, weak
European economic data and the prospect of 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 (for) ... a little bit of bargain hunting."
The FTSE 100 was up 66.72 points, or 1 percent, at
6,634.08 points by 1453 GMT, bouncing from oversold territory
after a 3.3 percent fall over the previous two weeks. Trading
volume, however, stood at only half of the 90-day daily average.
The broader FTSE 350 index, which also includes
small caps, was up 1.1 percent. It had fallen for three straight
sessions as well.
Mid-cap chemical firm Synthomer was the top riser
on the FTSE 350, up 7.1 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
note. "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."
(Additional reporting by Francesco Canepa; Editing by Ruth