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Britain's FTSE recovers, led by Johnson Matthey
June 6, 2013 / 7:21 AM / 5 years ago

Britain's FTSE recovers, led by Johnson Matthey

LONDON, June 6 (Reuters) - 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 purchase programme.

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)

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