London - UK shares rose on Wednesday, boosted by positive company news from BT Group and British American Tobacco, with focus on a Federal Reserve's decision on US interest rates due later on in the day.
The blue-chip FTSE 100 index was up 0.3 percent at 6,384.57 points at 09h21 GMT on Wednesday, after falling for the past two sessions.
Communications services company BT Group led the index higher, rising 3.5 percent after the British Competition and Markets Authority provisionally cleared its deal to buy mobile operator EE .
British American Tobacco advanced 1.8 percent after reporting its revenue rose in the year to date by 4.2 percent excluding currency impact. Imperial Tobacco Group also rallied, gaining 1.3 percent.
British engineering firm Meggitt fell the most, plunging more than 22 percent. The company said its full-year underlying operating profit would be “meaningfully” below forecasts as a downturn in its military division compounded an already poor performance from its energy unit.
“Today's warning raises questions on the timing of recent acquisitions and the cessation of the share buyback given weakness in the core businesses,” Investec analysts wrote in a note.
Mining stocks also fell, with Antofagasta down 2.8 percent after cutting its annual copper production forecast.
“After a production cut at lower copper prices, it doesn't bode well for a pure copper play,” said Jonathan Roy, advisory investment manager at Charles Hanover Investments. Investors were wary of mining stocks, which haven't sustained their rally after China cut interest rates last Friday, Roy said.
The FT350 mining index was set for its third straight loss in three days, down 1 percent. Shares in BHP Billiton, Rio Tinto and Anglo American fell 0.9 to 1.7 percent, as the price of copper slid on weak US economic indicators.
Lloyds Banking Group fell 4.6 percent after reporting weaker-than-expected results and setting aside another 500 million pounds ($765 million) charge to compensate customers who were mis-sold loan insurance. That takes its total bill to 13.9 billion pounds, more than double any other bank's.Reuters