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Britain's FTSE climbs to 11-month closing high as insurers rise

Wed, 20th Jul 2016 16:20

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

* FTSE 100 rises 0.5 pct to 6,728.99 points

* Healthcare stocks among top gainers

* Admiral Group rises after upgrade, L&G up as well

* Miners fall on disappointing results

By Kit Rees

LONDON, July 20 (Reuters) - Britain's top shares indexclimbed to its highest closing level in 11 months on Wednesday,boosted by a rise in insurance stocks, although a slump in AngloAmerican pushed down the mining sector.

The blue-chip FTSE 100 index ended up 0.5 percent at6,728.99 points -- its best closing level since August 2015.

Insurance company Admiral rose 2.8 percent afterUBS upgraded the stock to "buy" from "neutral", helping to liftshares in rival Legal & General by 3.1 percent.

Healthcare stocks Shire and Hikma alsogained ground.

Traders said the healthcare sector remained in favour forits "defensive" characteristics of solid profits and dividends,given general uncertainty over Britain's vote last month to quitthe European Union.

While the FTSE 100 has managed to recover from an initialslump after the Brexit vote, the hit to sterling has dented thevalue of the FTSE 100 in U.S. dollar terms for internationalinvestors.

"The health sector has been a traditional, defensive play.There is an element of nervousness creeping into the marketcurrently regarding what the implications of the Brexit will be,so pharmaceuticals do present some form of a safe haven in termsof volatility," said Jonathan Roy, advisory investment managerat Charles Hanover Investments.

Mining stocks underperformed, with Anglo American falling 4.8 percent after reporting a setback in its iron oreproduction.

The FTSE 350 Mining index dropped 2.4 percent,marking its fourth straight session of losses.

"There is a good chance the earnings downgrade cycle may beover for the resources sector, with commodity prices regainingstrength and demand fundamentals looking slightly better," saidRuss Mould, investment director at AJ Bell. (Editing by Catherine Evans)

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