* FTSE up 0.1 percent
* ENRC boosted by hopes of Glencore approach
* Investors cautious on macro woes, inflation data eyed
By David Brett
LONDON, June 13 Miners dug deep to help lift
Britain's FTSE 100 share index marginally on Monday, as bid talk
swirled around Kazakh miner ENRC.
ENRC ENRC.L rose 4.7 percent, outperforming a 0.2-percent
rise on the British mining index, .FTNMX1770, after the Sunday
Times said commodities trader Glencore (0805.HK) was considering
a 12 billion-pound ($19 billion) takeover bid. [ID:nLDE75C0AM]
ENRC shares have been savaged recently, down almost 24
percent since mid-April to Friday's close, as a corporate
governance crisis at the company has sapped investor confidence.
ENRC shareholder Kazakhmys (KAZ.L), also weaker in the
previous session, added 2.2 percent.
Separately, Kazakhmys secured a $1.5 billion loan from China
to help develop one of its copper fields, prompting Evolution
Securities to repeat its "add" rating on the stock.
The FTSE 100 .FTSE closed up 7.66 points, or 0.1 percent,
at 5,773.46, in thin volumes, having dropped 1.6 percent on
Friday and ending below the 5,800 level for the first time since
"The index needs to post a weekly close back above (its
200-day moving average of around 5,835) to stabilise in the near
term, while on the down side the index currently has trend line
support at 5,750 from its 2009 lows at 3,460.70," Michael
Hewson, market analyst at CMC Markets, said.
The underlying mood in the market remained cautious, with
investors pressured by concerns over a sluggish global economic
recovery after a run of downbeat U.S. economic data, with
inflation data out of both the UK and U.S. on Tuesday.
Fears over a sovereign default in the euro zone also
The cost of insuring peripheral euro zone bonds against
default hit record highs on Monday as disagreement over how to
tackle Greece's debt crisis underpinned safe-haven debt.
Back among London's blue chips, Aggreko (AGGK.L) shed 3.2
percent as Numis Securities cut its rating on the temporary
power supplier to "hold" as it sees increased competition in the
sector following Horizon Acquisition's HZNA.L purchase of
U.S.-based APR Energy.
Negative broker sentiment also weighed on Reckitt Benckiser
(RB.L), off 1.3 percent, with Morgan Stanley cutting its rating
on the consumer goods firm to "equal-weight", traders said.
And Imperial Tobacco IMT.L fell 1.4 percent after the
cigarette group said price cutting in Spain meant its full-year
adjusted operating profit from that country could be reduced by
up to 110 million pounds. [ID:nLDE75812C]
Back on the upside, Vodafone (VOD.L) rose 0.8 percent as RBS
raised its target price on the mobile telecoms firm and said it
remained relatively attractive.
A trader said: "Vodafone has consistently exceeded its
guidance for the last two years and we expect them to deliver
ahead of expectations next time and this will result in yield
buyers adding this to portfolios."
GlaxoSmithKline (GSK.L) climbed 0.5 percent after the U.S.
Food and Drug Administration gave its limited backing for the
drugmaker's and Valeant Pharmaceuticals International's (VRX.TO)
new epilepsy drug Potiga. [ID:nLDE75C05U]
Banks .FTNMX8350 rose as Britain's Financial Service
Authority extended the amount of time needed by the country's
top banks to settle claims over the mis-selling of payment
protection insurance (PPI), which rattled the banking sector
last month. [ID:nWLA2353]
Lloyds Banking Group (LLOY.L) added 1.4 percent, after the
Sunday Times reported it could cut up to 15,000 jobs as part of
a new 1 billion pounds cost-saving plan. [ID:nLDE75B05G]
(Additional reporting by Tricia Wright; Editing by David