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* FTSE 100 up 0.5 pct
* Dixons Carphone beats forecasts
* Pearson falls on peer readacross
By Kit Rees
LONDON, Sept 8 UK shares rose on Thursday,
building on gains made in the previous session, with Dixons
Carphone advancing after a positive earnings update.
Dixons, Britain's biggest consumer electricals and mobile
phone retailer, was the top blue chip riser, gaining 3.6 percent
and touching a post-Brexit high after it beat forecasts with a 4
percent increase in quarterly sales.
It also said that it had seen no impact from Britain's vote
to leave the European Union.
"With trading ahead of expectations ... we remain confident
that we could be upgrading as we move through the year. The
shares are weak and remain undervalued and we advocate a strong
Buy," analysts at Liberum said in a note.
The blue chip FTSE 100 index was up 0.5 percent at
6,880.45 points by 0918 GMT, outperforming the broader European
market ahead of a European Central Bank meeting later in the
While the euro zone economy is expected to need more
stimulus from the ECB, interest rates were expected to be kept
"Clearly the drumbeats of further action (are) becoming ever
louder," Russ Mould, investment director at AJ Bell, said.
"Equity investors still seem happy to believe ... that
central banks have got their backs in terms of economic stimulus
and also ongoing monetary stimulus which, to a degree, is still
creating this 'there is no alternative'-type philosophy when it
comes to the hunt for yield in equities."
Airlines International Consolidated Airlines, owner
of British Airways, and easyJet also made gains, up 2.8
percent and 2.3 percent respectively.
Pearson, however, dropped nearly 4 percent on
readacross from its U.S. peer John Wiley, which reported
a disappointing set of first-quarter results.
It was joined by Standard Life and Admiral Group
, which both fell after going ex-dividend.
Among the mid caps, travel group Thomas Cook Group
gained 4.5 percent after rival Dart Group reported a
positive set of results, saying that summer leisure travel
bookings showed no signs of a slowdown.
(Reporting by Kit Rees; Editing by Susan Fenton)