STOCKS NEWS EUROPE-UK small caps closes modestly higher

The FTSE Small Caps index closes 0.1 percent higher on Monday, NewYear's Eve, tracking similar modest gains by the mid caps, also up 0.1percent, while the blue chips shed 0.5 percent after a half-day session. The small caps index has gained 24 percent over 2012, just outperforming a 22percent advance by the FTSE 250 index, but easily surpassing a 6 percent rise bythe FTSE 100 index after a volatile year dominated by concerns over the survivalof the euro zone, and the impact of austerity measures and expiring tax cuts inthe United States on the faltering global economic recovery. Proteome Sciences gains 4.4 percent as the biotech firm says anin-vivo study of its proprietary CK1D inhibitor programme for Alzheimer'sdisease (AD), completed as anticipated in December 2012, demonstrated improvedcognitive function. "We believe that inhibiting CK1D will be an important component in treatmentof AD and we will concentrate on rapidly developing these assets," Dr. Ian Pike,Proteome's Chief Operating Officer says. Silvermere Energy falls 4.5 percent as the independent oil and gascompany with assets in the Gulf of Mexico, says the main interconnect pipelineto its Mustang Island 818-L field, operated by Exxon Mobil, remains shut down asa result of the repair work being carried out on it taking longer than expected.[ID: nRSe5553Ua] Silvermere shares shed nearly 10 percent on December 4 when it revealed theinterconnect pipeline would be shut down for up to two weeks for urgent repairs. Reuters messaging rm://jon.hopkins.thomsonreuters.com@reuters.net