LONDON, June 6 Britain's top shares edged higher
on Thursday, steadying after steep losses in the previous
session, led by speciality chemicals group Johnson Matthey
which reported a smaller than expected drop in profit.
The FTSE 100 was up 10.15 points, or 0.2 percent, at
6,429.46 points by 0715 GMT, having slid 2.1 percent on
Wednesday, pushing it below its 50-day moving average on
concerns the U.S. central bank might soon scale back its bond
Although the index is now looking fragile from a technical
standpoint, some analysts said bouts of volatility could offer
attractive entry points for investors plumping for equities over
bonds due to better returns.
"The big long term question is how we exit from QE
(quantitative easing) and unconventional stimulus but I think
the asset allocation argument (still holds). The first port of
call is still equities because you've got that yield advantage,"
said Ian Williams, equity strategist at Peel Hunt.
Johnson Matthey jumped 7.8 percent as its underlying pre-tax
profit came in at the top end of analyst expectations, while
Barclays was a big faller, off 2.1 percent as traders
cited market speculation that Nomura had placed 84.5 million
Barclays shares on the market.
(Reporting by Tricia Wright; Editing by Sudip Kar-Gupta)