RPT-FTSE up as banks cheer Basel ruling

(Repeats to delete stray character in headline)

* FTSE up 0.7 pct

* Banks rally as Basel ruling eases capital raising fears

* Miners, energy stock higher on bullish China data

By David Brett

LONDON, Sept 13 (BestGrowthStock) – Bank stocks helped push
Britain’s top shares higher on Monday after proposed new banking
rules published Sunday came in less severe than expected, while
data from China underpinned commodity gains.

By 0801 GMT, the FTSE 100 (.FTSE: ) was up 36.70 points, or
0.7 percent, at 5,538.34, having hit a four-month closing high
on Friday, up 0.1 percent at 5,501.64.

Banks (.FTNMX8350: ) were the sharpest risers on London’s blue
chip index after global regulators agreed to force banks to more
than triple the amount of top-quality capital they must hold in
reserve, but gave the lenders transition periods up to January
2019 or later, to comply with the rules. [ID:nLDE68B0BP]

Royal Bank of Scotland (RBS.L: ) and Lloyds Banking Group
(LLOY.L: ) rose 2.7 percent and 2.6 percent respectively.

“The banking rules coming out of Basel were probably not as
bad as first feared with some of the uncertainty removed and the
timeframe for the banks to get their houses in order quite
generous,” Richard Hunter, head of UK Equities at Hargreaves
Lansdown Stockbrokers said.

Sticking with financials, Prudential Plc (PRU.L: ) climbed 3.4
percent after the Sunday Times reported, without citing sources,
that a group of Chinese investors are in the early stages of
considering a takeover offer for British insurer.
[ID:nLDE68B0BD]

Insurer Aviva (AV.L: ), which has also been linked in the past
with bid interest, added 1.2 percent.

CHINA DATA

The FTSE echoed gains overnight in Asia (.MIAPJ0000PUS: )
after data showed Chinese factories increased production in
August and money growth easily topped analysts’ expectations,
showing that the economy remained buoyant despite government
efforts to clamp down on bank lending and property speculation.
[ID:nTOE68A00H]

“It’s a question now of convincing the markets that what
we’re seeing in China is simply very strong growth rather than
overheating, and today’s figures tend to suggest the former,”
Hargreaves’s Hunter said.

The data sparked renewed demand for energy (.FTNMX0530: ) and
mining (.FTNMX1770: ) stocks, which rose in tandem with
commodities, as crude (CLc1: ) gained $1 a barrel and metals
prices climbed across the board.

BP (BP.L: ) added 0.8 percent. The oil major believed
compensation claims related to its Gulf of Mexico oil spill
would be less than the $20 billion the oil giant put into an
independent claims fund, analysts at Citigroup said, following a
meeting with incoming Chief Executive Bob Dudley.
[ID:nLDE68C05E]

Miners Anglo American (AAL.L: ) and Kazakhmys (KAZ.L: ) added
1.7 and 2.3 percent respectively.

On the downside, Primark owner Associated British Foods
(ABF.L: ) fell 3.3 percent as it said it saw a slight slowdown in
sales growth at its fashion discount retailer, and that its
second half profits would show a substantial rise resulting in a
very strong rise in annual earnings. [ID:nLDE6890KI]

Panmure Gordon cut its rating on Associated British Foods to
“hold” from “buy”, on valuation grounds.

It is a busy week for the retailers with Debenhams (DEB.L: ),
Next (NXT.L: ) and Kingfisher (KGF.L: ) all due to report, with
investors looking for guidance on the outlook for the sector,
which many believe will be impacted by the UK government’s
austerity measures.
(Editing by Sharon Lindores)

RPT-FTSE up as banks cheer Basel ruling