FTSE extends gains, Hikma and GlaxoSmithKline support

* Blue-chip FTSE 100 index rises 0.7 percent

* Barclays, British American Tobacco advance

* Quintain Estates and Development surges 23 pct

By Atul Prakash and Liisa Tuhkanen

LONDON, July 29 (Reuters) - Britain's top share indexadvanced on Wednesday, with Hikma Pharmaceuticals leading themarket higher on positive broker comments and GlaxoSmithKlinegaining after reporting a lower-than-expected fall in quarterlyearnings.

Hikma shares were the biggest blue-chip gainersafter a target price update from Jefferies, adding 3.6 percentto the 11.6 percent jump on Tuesday, when it announced a deal tobuy Boehringer Ingelheim's U.S. generic drugs business Roxanefor about $2.65 billion in cash and stock.

"The deal has created a firm foundation for future growth,"Augustin Eden, analyst at Accendo Markets, said. "Hikma sharescould be bound for a return to February highs and above - stilla healthy 8.5 percent away despite gains of yesterday."

The blue-chip FTSE 100 index was up 0.7 percent at6,601.92 points by 1339 GMT, after rising 0.8 percent in theprevious session when it snapped a five-day losing streak.

Drugmaker GlaxoSmithKline rose 2.8 percent afterflagging up dozens of new drugs and vaccines in development asdemand for new HIV medicines helped it beat quarterly profitforecasts.

Barclays shares rose 2 percent after the bank,which reported a 12 percent rise in profit, said it intended toaccelerate the sale of assets and cost cutting.

"Barclays appears eager to press ahead with the increasedpace of restructuring ... Most of the key metrics continue toshow improvement, with a reduction in operating expenses andimpairments being complemented by another robust income showing,leading to a notable hike in adjusted profits," Richard Hunter,head of equities at Hargreaves Lansdown, said.

"In addition, the capital cushion remains comfortable andthe return on equity is showing some signs of life."

British American Tobacco was up 3.2 percent afterreporting a better-than-expected performance for the secondquarter.

Small-cap Quintain Estates and Development jumped 23percent on news that it is to be bought by U.S. private equityfirm Lone Star after receiving a bid valuing the firm at around700 million pounds ($1.1 billion)..

On the downside, Compass Group fell 4.8 percentafter the world's biggest catering firm said operating profitthis year and next would be hit by restructuring costs.

Mid-cap engineering supply group Premier Farnell slumped 17 percent following comments that it expected a 10percent fall in first-half adjusted operating profit after salesgrowth per day in its main markets slowed in the second quarter. (Editing by Alison Williams and Susan Thomas)