FTSE rallies; miners up on Australia tax hopes

* FTSE 100 up 2 pct; closes above 5,000 points level

* Miners rally; reports of easing of “super tax”

* Burberry jumps after earnings beat expectations

* BP climbs on oil spill capping hopes

By David Brett

LONDON, May 26 (BestGrowthStock) – Britain’s top share index
recovered to close above 5,000 points on Wednesday, led by
miners after reports the Australian government may relax
punitive tax measures, while Burberry (BRBY.L: ) jumped after
strong earnings.

The FTSE 100 (.FTSE: ) ended up 97.40 points or 2 percent at
5,038.08, having tumbled 2.5 percent on Tuesday to its lowest
close since September.

“The positive moves … certainly helped us breathe a sigh
of relief that there remains some form of confidence out there,”
said Nick Serff, market analyst at City Index said.

Gains in miners were upheld after The Australian newspaper
reported on its website that the government there was planning
to redefine its proposed super-profits levy.

Global miners such as Rio Tinto (RIO.L: ) and BHP Billiton
(BLT.L: ) have been weighed by concerns other nations could follow
Australia’s lead by introducing a windfall tax on mining
profits.

Rio Tinto (RIO.L: ), Xstrata (XTA.L: ), Lonmin (LMI.L: ), Anglo
American (AAL.L: ), Kazakhmys (KAZ.L: ) and BHP Billiton (BLT.L: )
added as much as 7.3 percent, also gaining in tandem with firmer
metal prices as investor pessimism abated about the demand
outlook.

“We need to see investors continue to build on these new
positions before the market can afford to relax some more,”
Serff added.

TOP GAINER

Burberry topped the blue chip risers chart, up 7.6 percent
after the luxury goods group beat forecasts with a 23 percent
rise in annual profit and said it was stepping up its expansion.

BP (BP.L: ) reversed early losses, up 1.4 percent with traders
citing market talk that the oil major may give some positive
news on its effort to contain an oil spill in the Gulf of
Mexico.

The company, however, said it had not taken any decision on
whether to try to plug the ruptured well with heavy fluids, the
so-called “top kill” procedure, and had no timescale for issuing
a statement.

Peer BG Group (BG.L: ) added 3.2 percent, while crude (CLc1: )
rallied towards $71 barrel as demand fears faded.

Despite uncomfortable fiscal news emanating from the euro
zone over the last few weeks — which has sent the FTSE 100 down
over 13 percent since mid-April — UK corporate results have
been robust.

C&W Worldwide (CWP.L: ) gained 4.8 percent after posting
full-year results in line with forecasts. It also said it was
confident it would meet expectations for cash and earnings
generation as conditions improve.

Banks, among those that have been hardest hit by fears over
the sovereign debt crisis in the euro zone, were also firmer.

Barclays (BARC.L: ), Standard Chartered (STAN.L: ), Royal Bank
of Scotland (RBS.L: ) and Lloyds Banking Group (LLOY.L: ) rose as
much as 6.7 percent.

British Airways (BAY.L: ) climbed 4.1 percent as the airline
said it is set to resume talks with the Unite union in an
attempt to avert further strike action.

International Power (IPR.L: ) and fashion retailer Next
(NXT.L: ) were the top fallers, down 1.6 percent each after losing
their dividend attraction.

Stock Market

(Editing by David Holmes)

FTSE rallies; miners up on Australia tax hopes