* FTSE 100 index up 0.2 pct, trades near record peak
* Miners helped by signs of strength in global economy
* Lloyds weakens as it prices TSB float cheaply
By Atul Prakash
LONDON, June 9 Britain's top share index
extended its gains and traded near a record high on Monday, led
by mining companies, amid signs a global economic recovery was
picking up speed.
The UK mining index rose 0.6 percent, making it
the biggest sectoral gainer in the FTSE 100 index. The
gains came after China, the world's biggest metals consumer,
posted a rise in exports and the U.S. reported encouraging jobs
data on Friday.
"The global economic recovery is grinding higher, and
weekend macroeconomic data from China further supports this
view," said Robert Parkes, an equity strategist at HSBC.
"The improving business cycle is positive for cyclical
sectors and obviously helps the mining sector, which is
particularly sensitive to developments in China."
The FTSE 100 index was up 0.2 percent at 6,872.69 points by
1402 GMT, leaving it just about 1 percent shy of the record set
in late 1999. It has risen in the previous two weeks and is up
nearly 2 percent so far this year.
"Improving global economic outlook is helping sentiment,"
said Daniel Harris, director and head of dealing at H2O Markets.
"However, I am cautiously positive, as the FTSE seems to be
lacking momentum to push significantly higher from here and some
investors might get tempted to take some profits off the table,"
The index has been coming up against resistance around
6,880, but Charles Stanley technical analyst Bill McNamara said
it no longer looks overbought, which "implies that it might be
able to push higher in the near term".
Charts showed the 14-day relative strength index for the UK
benchmark was at about 59 after rising last month to around 70,
a technically "overbought" market condition that often results
in a pullback.
Alpari analyst Craig Erlam also saw scope for more gains.
"Should we see a break above the 29 May highs of 6,882, it
would suggest the grind higher is not over, while a break above
15 May highs of 6,894 would further support this," he said.
On the negative side, Lloyds Banking Group dropped
1.6 percent. The bank said it would list a quarter of its shares
in TSB on the London stock market at a price of 220-290 pence
per share, which is below the business's book value.
The price reflects a cooling of investor interest in UK
company flotations in recent weeks after a rush of activity
earlier in 2014. Clothing chain Fat Face pulled its planned
London listing last week, and shares in insurance-to-holidays
firm Saga have fallen below their IPO price.
"I am feeling these IPOs are starting to grow weary on
investors. The recent SAGA failure is no exception and to price
in at the bottom of the range presents a double-edged sword,"
said Galvan's head of trading, Ed Woolfitt.
"Bearing in mind Lloyds need to make the disposal as they
are obliged, it may be just a case of them making sure it is
(Additional reporting by Tricia Wright; Editing by Larry King)