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Share Price: 518.60
Bid: 518.70
Ask: 518.80
Change: -8.70 (-1.65%)
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Open: 521.70
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Britain's FTSE supported by commodity stock rebound

Tue, 21st Jun 2016 16:59

* FTSE 100 up 0.4 pct

* Miners, oil firms rebound

* Whitbread rises after results

* Circassia Pharmaceuticals rises after sharp slump (ADVISORY- Follow European and UK stock markets in real time onthe Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

By Kit Rees and Alistair Smout

LONDON, June 21 (Reuters) - UK shares ended higher onTuesday with commodity stocks rebounding from early weakness, asthe equities market continued to price in a greater likelihoodof Britain voting to remain in the EU ahead of Thursday'sreferendum, despite mixed polls.

The blue chip FTSE 100 index closed up 0.4 percent at6,189.30 points, having been down by around 0.8 percent earlierin the day.

It rose for a third straight session, extending gains from a3 percent rise on Monday after polls showed momentum wasshifting towards the campaign for Britain to remain in theEuropean Union.

Two opinion polls on Monday suggested support for Britainstaying in the EU had recovered some ground, though a third pollfound support for a "Brexit" slightly ahead and another onTuesday showed it drawing closer to the remain campaign.

"We have seen Brexit poll volatility, but much of the recentmovement in the market looks like it is pricing in Remain," saidAtif Latif, director of trading at Guardian Stockbrokers.

"This would result in a more aggressive sell off if theLeave campaign wins."

Mining stocks recovered from an early drop, with Antofagasta, BHP Billiton, Rio Tinto and Glencore all well off their lows as the price of copperrebounded.

Oil majors BP and Royal Dutch Shell bothrose 0.9 percent, adding the most points to the FTSE 100. Whileoil fell for the first time in three days, it recovered fromlows after rebels who have sabotaged Nigeria's crude exportsdenied a one-month ceasefire agreement.

Shares in housebuilder Berkeley Group fell 1.3percent after Canaccord Genuity cut its price target on thestock.

Hospitality Group Whitbread rose 1.7 percent on theback of a well-received update which showed solid figures fromits Costa Coffee outlets.

"Costa Coffee continues to provide the main stimulus behindWhitbread's sales growth," Russ Mould, AJ Bell investmentdirector, said.

Outside of the blue chips, Circassia Pharmaceuticals rebounded 6.6 percent after slumping in the previoussession.

Neil Woodford, the second-biggest shareholder in Circassiawith almost 20 percent, said on Monday after the market closedthat he backed the board of Circassia Pharmaceuticals followingthe failure of its cat allergy treatment.

Engingeering company Senior plunged over 12 percentafter warning of lower revenue in the second half of this yearat its Flexonics unit due to tough market conditions in theheavy truck and oil and gas sectors. (Editing by Alexandra Hudson)

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