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CORRECTED-Britain's FTSE boosted by airlines, builders
November 6, 2013 / 9:01 AM / 4 years ago

CORRECTED-Britain's FTSE boosted by airlines, builders

(Corrects attribution in 6th paragraph to Lloyds Bank Private
Banking)
    * FTSE 100 up 0.2 percent
    * Recovers after finding support at 10-day moving average
    * Selloff in Experian dampens index's gains

    By Toni Vorobyova
    LONDON, Nov 6 (Reuters) - Britain's blue chip share index
edged higher on Wednesday, with rising sales at housebuilder
Persimmon and increased passenger numbers on budget
airline Easyjet offering fresh signs of an economic
recovery. 
    Easyjet rose 2.2 percent to the top of the blue-chip index
after reporting a 5.4 percent increase in October passenger
traffic, reinjecting confidence into the airline sector
following a profit warning from rival Ryanair earlier
this week. 
    "I thought it was harsh that they sold off as badly as they
did on the Ryanair numbers. Just the passenger details along
with the general improvement in sentiment this morning (mean)
they're better bid," said Matt Basi, head of sales trading at
CMC Markets.
    "They trade on a forward PE (price-to-earnings ratio) of 13,
they're not an expensive stock, and really within the budget
space they're the number one performer."
    Construction and materials also did well after
Persimmon said it was fully sold for the current year, with the
weekly private sales rate up around 45 percent since July
compared to 2012. 
    "Real estate is doing well, construction is a pretty hot
sector right now," said Ashish Misra, head of investment policy
and research at Lloyds Bank Private Banking, whose other
favoured sectors include technology.
    "The (UK economic) recovery is not particularly broad-based.
It is still focused on property, it is still focused on
financial services, it is still focused in the South East of the
country, but certainly the signs are encouraging ... We are at a
stage now which merits a pro-cyclical stance."
    The FTSE 100 gained 14.16 points, or 0.2 percent, to
6,760.47 points by 0843 GMT, bouncing up from technical support
at the 10-day moving average and moving back towards a 5-month
peak of 6,819.86 hit last week.
    The rise, though, were tempered by a steep fall in Experian
. The British credit data provider dropped 6.6 percent,
after unveiling broadly flat first half profits and a plan to
buy U.S. healthcare data firm Passport Health Communications for
$850 million.
    "We are lowering our rating to 'neutral', reflecting
valuation - the shares are close to our price objective after
rising 10 percent over the last month - and some disappointment
on short-term organic growth," analyst at Bank of America
Merrill Lynch said in a note. 
    "Investors may also question the shift in capital allocation
to more expensive M&A."

 (Editing by John Stonestreet)

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