STOCKS NEWS EUROPE-UK small caps close up 0.6 percent

The FTSE Small Caps index closes 0.6 percent higher, outperforminggains by the FTSE 250 index and the FTSE 100 index, which bothrise 0.3 percent. Animalcare Group gains 3 percent as the veterinary medicinessupplier confirms that its Buprecare single dose ampoules - an analgesic forcats and dogs - are now back on the market after an unexpected disruption tosupply in July 2011. "Whilst expected, this is positive news for Animalcare  FY12 was somethingof an annus horribilis for Animalcare, with a number of factors conspiringagainst the Group. Signs are that we are now through the worst of it and, whilstthe macro environment remains uncertain, the outlook is more positive," sayshouse broker N+1 Singer, which says the shares look good value standing on a 12month forward ex-cash price/earnings of 12 times. Abcam sheds 2.4 percent as Canaccord Adams downgrades its ratingfor the protein research tools provider to "sell" from "hold", with a reducedtarget price of 344 pence, down from 370 pence, citing valuation grounds aheadof the firm's first-half trading update expected in mid-January. "We believe that following a strong run the shares are overvalued and buildin an expectation of faster growth than is realistic in the current environment;where research grants are under pressure and pharmaceutical research spending isincreasingly focused on later stage research," Canaccord says in a note. Leni Gas & Oil jumps 9.4 percent after the explorer says it hascommenced legal proceedings against Mediterranean Oil & Gas (MOG) as itsview is that it was "misled" by the firm when Leni sold its 10 percent interestin a Malta Area 4 production sharing contract to Phoenicia Energy Company, asubsidiary of MOG, on July 31 2012. MOG shares fall 7.1 percent. Reuters messaging rm://jon.hopkins.thomsonreuters.com@reuters.net