June 25, 2013 / 11:06 AM / 5 years ago

Experian rises as UK's FTSE rebounds from lows

* FTSE up 0.9 pct, bouncing back off 5-1/2 month lows

* Experian and ARM among top gainers

* FTSE rebound fails to convince many traders

* Several traders looking to “short” FTSE on rebound

By Sudip Kar-Gupta

LONDON, June 25 (Reuters) - Britain’s benchmark equity index rebounded on Tuesday from 5-1/2 month lows, with credit data group Experian leading the gainers, after efforts by China to reassure markets over its money supply lifted sentiment.

The blue-chip FTSE 100 index, which had fallen some 12 percent over the last month after racing to a 13-year high in late May, was up by 0.9 percent, or 55.43 points, at 6,084.53 points in mid-session trade.

Helping the market mood were comments by China’s central bank, which said it would not turn the screws too hard on banks in its drive to curb easy credit.

Worries over a Chinese economic slowdown and a likely end to economic stimulus measures from the U.S Federal Reserve, which had driven an equity rally at the start of 2013, have knocked world stock markets back down over the last month.

But many traders remained unconvinced by the FTSE’s rebound from Monday’s 5-1/2 month lows, opting to take “short” positions to bet on renewed falls rather than “long” positions to bet on a more prolonged rally.

“I‘m looking to short into strength. I‘m not looking to go long here,” said Darren Easton, director of trading at Logic Investments.

Experian topped the FTSE 100 leaderboard, rising 3.6 percent to 1,126 pence to mark a recovery after falling some 16 percent over the last month from peaks of around 1,290 pence.

“The stock has been one of the steepest decliners and had been heavily shorted so it would bounce more than others on any broader market rally,” said Matt Basi, head of UK sales trading at CMC Markets UK.

Chip designer ARM was another top FTSE 100 gainer, rising 3.5 percent which traders attributed to Investec upgrading the stock to “buy” from “hold”. (additional reporting by Tricia Wright, editing by Gareth Jones)

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