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UK stocks end week higher as energy firms recover

Fri, 14th Nov 2014 17:30

* Blue-chip FTSE 100 index up 0.3 percent

* Energy stocks track slightly higher oil prices

* Aggreko shares rise 3.4 pct after update (Updates with closing prices)

By Atul Prakash and Lionel Laurent

LONDON, Nov 14 (Reuters) - Britain's top share index closedat a six-week high on Friday, with shares in energy firmsbouncing back after oil prices edged up from a four-year low.

BG Group, Royal Dutch Shell and BP were all up between 0.4 and 1.7 percent, helping the benchmarkFTSE 100 index reverse earlier losses to reach 6,654.37 points,a one-day gain of 0.3 percent.

"Energy shares undid some of the recent declines, surging tothe top of the main index as oil prices saw a big shortsqueeze," said CMC analyst Jasper Lawler.

The UK mining index remained in negativeterritory, down 0.2 percent as copper prices were ontrack for their biggest weekly loss since September. Miners RioTinto, BHP Billiton and Fresnillo dropped between 0.3 and 0.8 percent.

"With global growth expectations being reduced, commodityprices will stay under pressure and mining and energy stockswill likely continue to weaken," said John B. Smith, senior fundmanager at Brown Shipley.

"The FTSE 100 has had a rally of over 550 points since itslow on Oct. 16. In the short term it looks overbought and willprobably weaken. I doubt that the index can sustain its riseabove 6,500 points."

Aggreko, the world's biggest temporary powerprovider, rose 3.4 percent after saying that trading since itsinterim results in August had been in line with expectations.Underlying group revenue in the third quarter was 6 percentahead of last year, it said.

British engineering firm IMI reversed early lossesto rise 1.4 percent after reporting a revenue drop of 6 percentfor the four months to the end of October, and saying it wouldacquire German valve maker Bopp & Reuther Holding GmbH for anenterprise value of 152.6 million euros ($190 million).

Mid-cap Premier Farnell, a distributor of smallelectronics and electronic parts, slipped 8.8 percent afterwarning that softer trading conditions in Asia and Europe wouldleave full-year operating margins slightly below prior yearlevels. (Reporting by Atul Prakash and Lionel Laurent; Editing by MarkHeinrich)

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