STOCKS NEWS EUROPE-UK small caps close 1.3 percent higher

The FTSE Small Cap index .FTSC closes 1.3 percent higher, outperforming the blue chips .FTSE and the midcaps .FTMC, which both end 0.4 percent firmer.

Volumes at the small cap index are about 144 percent of its 90-day daily average volume, outstripping those at the FTSE 100, which are about 75 percent of its 90-day daily average volume.

International Greetings (INGR.L) soars 28 percent after the designer and manufacturer of gift wrap, crackers and cards swings to a profit of 4 million pounds for the full year 2009, from a loss of 4.8 million pounds a year ago. [ID:nRn1c4438W]

China Medical System (CMSH.L) jumps more than 22 percent after the Chinese pharmaceutical company reports a 34 percent rise in first-half pretax profit and says it is in talks with several companies for new product additions. [ID:nLT530089]

Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net