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* FTSE 100 up 0.4 pct
* Barclays rallies after HSBC upgrade
* But RBS bucks trend after FT report
* Miners lifted by Barclays' rating revision
By Alistair Smout and Adela Suliman
LONDON, Sept 21 Britain's top share index rose
on Wednesday, buoyed by its banks after the Bank of Japan
overhauled its monetary policy framework, with Barclays leading
gainers after a broker upgrade.
The FTSE 350 bank index was up 1.5 percent
after the Bank of Japan (BoJ) shifted key policies to establish
control over interest rate yield curves, instead of its
It recommitted to reaching its elusive 2 percent inflation
goal as quickly as possible. Easy monetary policy, low interest
rates and low growth have hit bank profitability in recent
"There's a follow through from the BoJ statement today, so
financials are bid on that. The yield curve benefit from Japan
in the banks today is quite a strong one," said Zeg Choudhry,
managing director of LONTRAD.
"The market was pretty tired of the lack of benefit from
existing policies. So they had to do something different."
HSBC and Standard Chartered, which have
substantial Asian exposure, rose 1 and 1.2 percent respectively.
Top riser was Barclays, which received the
additional boost of an upgrade to "buy" from "neutral" by HSBC.
British banks have suffered since the country voted to leave
the European Union, with the Bank of England cutting interest
rates again. The number of "buy" ratings on Barclays has dropped
to 9 from 16.
"The deleterious impact of low or negative interest rates
... has been the principal investment theme for UK banks since
the EU referendum," said analysts at HSBC in a note.
"We believe bank equity investors are too negative on
However, Royal Bank of Scotland went the other way, down 1.4
percent and the top FTSE 100 faller, after the Financial Times
reported that Banco Santander has pulled out of talks
to buy its Williams & Glyn unit.
LONTRAD's Choudhry said that RBS was the only big UK-listed
bank which lacked catalysts to sustain a rally.
Britain's FTSE 100 rose 0.4 percent to 6,859.54 points by
0829 GMT, up for a third straight session
Miners were beneficiaries of supportive broker comment,
after Barclays lifted its rating on the sector to "positive"
Anglo American and Rio Tinto rose 2.7
percent and 2.1 percent after target price upgrades, while
mid-cap Kaz Minerals rose 5 percent after it was
upgraded to "equal weight" from "underweight".
Barclays said that the re-introduction of dividends earlier
than expected was "an increasingly likely and powerful
catalyst", echoing other analysts who see scope for a rise in
dividends in the sector.
Anglo-Dutch publisher Relx fell 1.1 percent after
Macquarie cut its rating on the stock to "underperform".
(Reporting by Alistair Smout; Editing by Tom Heneghan)