FTSE notches up fifth day of gains on firm financials

By Sudip Kar-Gupta

LONDON (Reuters) - Britain's top equity index rose on Wednesday in its fifth straight day of gains as stronger financial stocks offset weaker energy shares which tracked a pullback in oil prices.

The blue-chip FTSE 100 index (.FTSE) rose 0.2 percent to 6,866.42 points, near its highest level in 14 months.

Financial stocks added the most points to the UK stock market, as insurer Prudential Plc (PRU.L) advanced 2.2 percent, helping lift rivals such as Legal & General (LGEN.L) and Admiral (ADML.L), with Admiral touching a record high.

Although Prudential reported lower first half profits, it said it was well placed to deliver both growth and cash.

MB Capital trader Rick Jones said the FTSE 100 had received a further fillip from traders moving in to buy up several blue-chip stocks before investors lost the right to qualify for their latest dividend payouts.

"The FTSE's been helped by some last-minute buying of those stocks for their dividends," said Jones. "We're bullish on the market in the medium to long term, but in the short-term we're a bit more bearish as we've had a good run over the last month."

Securequity sales trader Jawaid Afsar also forecast a short-term market pullback.

Shares in BP (BP.L) and Royal Dutch Shell (RDSa.L) slipped on the back of weaker oil prices, after a global supply glut weighed on the energy market and analysts said that talks of a potential producer meeting to discuss propping up prices was unlikely to have any impact on supplies.

The FTSE 100 fell around 6 percent in the immediate aftermath of Britain's shock "Brexit" vote in June to quit the European Union, but it has since recovered.

The Bank of England's move last week to cut interest rates to record lows has hit returns on bonds and cash, driving investors to the better returns on offer from stocks.

The FTSE 100 is up around 10 percent so far in 2016, although the value of UK shares in U.S dollar terms has been impacted by a slump in sterling following Brexit.

(Additional reporting by Atul Prakash; Editing by Alexander Smith)