FTSE snaps 3-day losing run

LONDON (Reuters) - The top share index ended 1 percent higher on Wednesday, snapping a three-session losing run, as commodity stocks rallied on the back of firmer metal and crude prices.

The commodity-heavy FTSE 100 .FTSE closed up 51.4 points at 5,371.8, after losing 3.2 percent in the previous three sessions.

The UK benchmark is down nearly 17 percent for the year on recession fears as well as rising inflation concerns and the impact of credit-related losses on financial institutions.

"Commodities are seeing a bit of a bounce but I am still a bit cautious," said Tim Whitehead, head of portfolio services at Redmayne-Bentley.

"It's better to be sitting on your hands at the moment," he said, adding that volume was thin with many traders and fund managers were away on holiday.

Miners held onto earlier gains after metal prices eased in late trade. Rio Tinto (RIO.L), BHP Billiton (BLT.L), Xstrata (XTA.L), Anglo American (AAL.L) and Eurasian Natural Resources (ENRC.L) put on 1.9 to 7.4 percent.

Energy stocks also rose, with BP (BP.L) rising 0.7 percent, Royal Dutch Shell (RDSb.L) gaining 2.1 percent and BG Group (BG.L) up 4.4 percent, even though crude prices CLc1 slipped in late session.

Oil explorer Tullow Oil (TLW.L) soared 6.8 percent after positive comments in research notes. UBS upgraded the stock to "buy" from "neutral" based on valuation and added that further exploration success could also make Tullow an M&A target.

Talks of China, one of the biggest metal and energy consumers, to introduce a stimulus package to jump-start growth also added a fillip to sentiment, with Asian stocks .MIAS00000PUS recovering from a two-year.