Heavyweight energy stocks helped haul top share index higher in early trade on Monday, although lingering concerns over global growth and technical factors limited equities' overall gains.
Among integrated oils <.FTNMX0530>, BG Group
Weakness in miners <.FTNMX1770>, however, countered gains in energy stocks, with the sector giving back some of Friday's late rally as concerns lingered over a possible slowdown in global growth, particularly from top metals consumer China.
(Recent) data from China will probably continue to be digested by investors and, being weighed up against improving conditions in the U.S., this could potentially cause a temporary range-bound period until we receive further headline figures, said Jordan Lambert, a trader at Spreadex Ltd.
At 0809 a.m., the UK blue-chip index was up 18.73 points, or 0.3 percent, at 5,873.62, having added 0.2 percent on Friday to finish above its 50-day moving average, a key technical level.
Technical analysis for the FTSE 100 index, however, while bullish in the short term, was cautious overall.
The closing price reversal bottom does not mean the trend has turned back to up, but what it does often is trigger a two- to three-day rally equal to at least 50 percent of the last break, said James A. Hyerczyk, analyst at Autochartist.
Based on the short-term range of 5,989.10 to 5,801.70, traders should look for a possible rally back to 5,895.40 to 5,917.51 by next week Tuesday or Wednesday. Since the main trend is down, traders are likely to short again when this zone is reached, Hyerczyk added.
Aberdeen Asset Management
Peel Hunt upgraded its rating for Aberdeen to buy from hold.
Banks <.FTNMX8350> were mixed as some initial gains faded, with part-state-owned lenders Lloyds Banking Group
British banking venture NBNK
But peer Barclays
Broker comment also lifted insurer Prudential
(Editing by Erica Billingham)