UPDATE 5-Sainsbury sees recovery signs, H1 profit up 19%

* H1 underlying profit 307 million stg, vs forecast 301 mln

* Sees market growth slowing on lower food price inflation

* Plays down speculation Qatari investor preparing a bid

* Expansion drive to add 10,000 jobs by March 2011

* Shares up 3.4 percent

(Adds more company comment, updates shares)

By Mark Potter

LONDON, Nov 11 (Reuters) - British grocer J Sainsbury (SBRY.L) posted a forecast-beating 19 percent rise in first-half profit and said it saw signs of a pick-up in spending, though industry growth would be curbed by lower food price inflation.

Chairman David Tyler played down speculation the company's biggest shareholder, the Qatar Investment Authority (QIA), might make a fresh takeover bid after a failed attempt in 2007.