* FTSE 100 up 0.1 pct
* BP rallies as profits reach 5-year high
* Reckitt retreats as results disappoint
* Generous budget lifts Kier(Adds closing prices)
By Danilo Masoni
MILAN, Oct 30 (Reuters) - A strong update from BP helped theUK's top share index end a choppy session in the black onTuesday, offsetting disappointing results from heavyweightReckitt Benckiser and outperforming European equities.
Heavyweight BP rose two percent after quarterlyprofits at the oil major reached a five-year high, boosted bystronger oil prices and as production rose thanks to new fields.
"We're a bit cautious to use the words 'blow out' whentalking about BP, but today's results are just that," saidBernstein analysts said in a note.
"With gearing nudging down and execution on track, the firstthree quarters are the start of a new positive trend for BP,"they added, affirming their outperform rating on the stock.
The energy sector provided the biggest boost to the FTSE 100but gains were curbed by a disappointing update from ReckittBenckiser.
Reckitt shares fell 4.5 percent to a three-month low afterthe consumer goods maker reported a smaller-than-expected risein underlying quarterly sales on Tuesday due to a manufacturingdisruption at a European baby formula factory.
Investec downgraded the stock to sell, highlighting worriesover margin pressure stemming from the former Mead business aswell as the slowing Chinese milk formula market.
Shares in Ocado rose five percent after the onlinegrocer agreed on terms of the delivery deal it struck with U.S.supermarket chain Kroger Co in May.
BUDGET MOVERS
Elsewhere the focus was on stocks moving in reaction to theUK budget announcement on Monday.
"The budget was more interesting than many had expected andthe improving public finances allowed a more generous approach,which should be helpful to many of the companies in ourcoverage," said Liberum analysts.
Plans to boost roads and railway spending lifted roadmaintenance firm Kier 4.6 percent and engineering firmCostain by 1.6 percent, while infrastructure companyBalfour Beatty eased 0.2 percent.
Liberum said the extra funding for high speed broadband inrural areas was another positive for Kier, while the demise ofprivately financed initiatives could be read negatively forBalfour.
Aero-defence group BAE Systems fell 2.7 percent.Traders mentioned deteriorating relations between the UK/Europeand Saudi Arabia, and said more was expected from the budget,which envisages a 1 billion pound increase for defence spending.
UK housebuilders were also in focus after an extension ofthe Help-to-Buy scheme to 2023 provided some fresh relief to thebattered sector.
Stocks with exposure to the scheme such as Persimmonand Taylor Wimpey rose 2.2 percent and 3.4 percentrespectively.(Reporting by Danilo Masoni; Editing by Jon Boyle, WilliamMaclean)
BP (BP.)
