By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Oil firms led U.K. stocks higher after a
broker upgrade on Monday, while shares of GlaxoSmithKline PLC also
showed upbeat moves after a target price lift.
The FTSE 100 index climbed 0.6% to 6,346.22, partly recovering
from four straight weeks of losses.
Shares of Reckitt Benckiser Group PLC added 1.7% after analysts
at Citigroup said the consumer-products firm is undervalued by the
market, particularly in light of its resilience to the recent entry
of generic competition in the U.S.
Oil firms were also on the rise after J.P. Morgan Cazenove
lifted the sector to overweight from neutral and mentioned BP PLC
(BP) as one of its top picks. Shares of BP added 1.3%, Royal Dutch
Shell PLC (RDSB) put on 1.2% and BG Group PLC gained 0.9%. Oil
prices were also higher.
Shares of GlaxoSmithKline PLC (GSK) picked up 0.6% to GBP16.84
after UBS lifted the price target on the drug maker to GBP17.45
from GBP14.50, citing improving longer-term prospects and higher
sector multiples.
Banks were also inspired by the positive sentiment, with shares
of HSBC Holdings PLC (HBC) up 1.1%, Lloyds Banking Group PLC (LYG)
0.6% higher and Royal Bank of Scotland Group PLC (RBS) rising
0.4%.
Bucking the positive trend in London, shares of Associated
British Foods PLC gave up 1.7% after Nomura cut the firm to reduce
from neutral.
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