Hot small caps: BG Group shares rise on broker note

LONDON (Reuters) - Following is a round-up of key small cap movers on the London stock market Tuesday.

10:35 BST - BG Group shares rise on broker note

Shares in UK-based gas producer BG Group (BG.L) jump on Tuesday after house broker JP Morgan Cazenove said the recent slump in the company's shares had made it good value for investors and potential acquirers.

BG Group is up 3.5 percent at 800 pence, having risen earlier by as much as 11 percent, outperforming a 2.2 percent rise in the DJ Stoxx European oil and gas sector index .SXEP.

Cazenove said a BG acquisition could be earnings accretive for U.S. oil major Exxon Mobil (XOM.N), although most of the big oil majors have been linked to a potential BG takeover in the past.

"A steady-state share price premium to Net Asset Value has recently collapsed to a 40 percent discount, by far the largest discount that we have ever recorded," analyst Fred Lucas said in his note.