* FTSE 100 index gains 0.1 percent
* Blue-chips receive support at 6,100 after early weakness
* Rio bullish on output, ENRC leads gainers
* Burberry rises after 9 pct rise in revenue
By Alistair Smout
LONDON, Jan 15 UK shares edged up on Tuesday,
helped by expectations of higher mining output this year but
unable to move above a fresh 4-1/2 year peak set in the previous
The FTSE 100 recovered from early falls in the
session, finding support around 6,100 and from steady inflation
data, but was still 0.4 percent lower than the new 4-1/2 year
high of 6,133.41 posted in Monday's trade.
"With the Chinese GDP data out on Friday this week, there's
a lack of drivers at the moment. We're in a 50 point range which
I think will continue until later in the week," Jack Pollard,
analyst at Sucden Financial Private Clients, said.
At 1130 GMT, the FTSE 100 index was up 0.96 points, or 0.01
percent at 6,108.82, having shed 0.2 percent on Monday after
reaching its highest since mid-2008 early in the session. The
index is up over 2 percent since the start of 2013.
Gains by miners and materials provided the main
strength for the blue chips, adding over 4 points to the index,
as upbeat production news from Rio Tinto buoyed the
sector after falls on Monday.
The global miner added 0.4 percent having been up as much as
2.3 percent after it said it aims to boost iron ore output by 15
percent this year as resurgent Chinese demand drives a price
recovery. Production in 2012 climbed to 253 million tonnes,
beating the firm's own guidance.
"Resource stocks in general are doing fairly well, and the
news from Rio Tinto is supporting that, although into the
tail-end of the week global macro data will take over as the
main driver," Pollard said.
Leading the miners - and the index - up was ENRC
rising 4.4 percent, extending gains made in the previous session
following a Credit Suisse upgrade. The Daily Mail newspaper
suggested the Kazakh-based miner had also risen on Monday on
speculation it had turned down a bid approach from major
shareholder Alijan Ibragimov.
Burberry Group was just behind ENRC on the list of
top blue chip gainers, gaining 4.2 percent as the British luxury
brand posted a 9 percent rise in third-quarter underlying
"The key good news is the recovery of retail (sales)
like-for-likes from 1 percent in the previous quarter to 6
percent in the third quarter," BofA ML said in a note, raising
its rating to 'buy' from 'neutral', and upgrading its earnings
forecasts by up to 4 percent.
"Given the concerns surrounding the brand since the profit
warning, this acceleration should support sentiment in the
Tuesday's share price hike in early trade has restored
Burberry to its levels in September just before it shed over 20
percent after issuing a profit warning.
Despite trading at a relatively high forward 12-month
price-to-earnings multiple of 17.9, top-rated analysts in the
sector expect Burberry to post a positive earnings surprise of
1.6 percent over the next 12-months, second only to Swiss
watch-maker Swatch among peers, according to Thomson
Reuters Starmine data.
(Additional reporting by Jon Hopkins and David Brett; Editing
by Ruth Pitchford)