FTSE rises as Burberry and Tesco advance

By Sudip Kar-Gupta

LONDON (Reuters) - Britain's top shares index rose on Tuesday, lifted by gains in consumer goods stocks ranging from luxury fashion group Burberry (BRBY.L) to supermarket retailer Tesco (TSCO.L).

The blue-chip FTSE 100 index (.FTSE) closed up 0.3 percent at 6,830.79 points.

Burberry climbed 3.6 percent, the best-performing FTSE 100 stock in percentage terms. CMC Markets analyst Jasper Lawler said investors appeared to be reacting favourably to its 'see now, buy now' collection at London Fashion Week.

Tesco advanced 0.9 percent after the latest Kantar grocery sales data showed it had achieved its best 12-week sales performance in more than two years.

Shares in its rivals Sainsbury (SBRY.L) and Morrisons (MRW.L) fell, with both companies reporting lower sales in contrast to Tesco.

Shares in British Airways operator International Consolidated Airlines Group (IAG) (ICAG.L) fell 3.6 percent, making them the worst performing FTSE 100 stock.

They were hit by a downbeat outlook from rival Air France KLM (AIRF.PA), whose boss warned of a further decline in bookings in coming months as a result of Islamist militant attacks and a cabin crew strike.

The FTSE is up around 10 percent so far in 2016, as record low interest rates from the Bank of England have helped offset a hit to the market from June's shock referendum vote to quit the European Union.

The low rates have impacted returns on bonds and cash, driving investors over to the better returns available from the stock market and companies' dividend payouts.

(Additional reporting by Alistair Smout; Editing by Mark Trevelyan)