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REFILE-FTSE gains for 10th day; Vodafone results boost

Published 07/24/2009, 04:41 AM
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(Corrects date in dateline)

* FTSE 100 extends gains into tenth day

* Vodafone top riser after in-line results

* FTSE up 0.4 percent

* Miners pare sharp recent gains

By Simon Falush

LONDON, July 24 (Reuters) - Britain's top share index edged higher early on Friday, in positive ground for a 10th straight session as Vodafone gained on in-line results, offsetting weakness in miners.

The first reading for second-quarter growth will be the main focus later, with preliminary GDP seen down 0.3 percent on the quarter, after a record 2.4 percent drop in the first quarter.

The FTSE 100 was up 16.78 points, or 0.4 percent at 4,576.58 by 0907 GMT, after closing 66.07 points, or 1.5 percent higher on Thursday for its highest closing level since January.

The index is up 31 percent since a six-year low was set on March 9 and has gained for nine consecutive sessions, rising 11 percent in its longest winning run since late 2003.

Vodafone was the second strongest riser, up 2.8 percent after the world's largest mobile phone firm by revenues, reported a slight decline in organic sales that was in line with muted market expectations.

United Utilities, Britain's largest water company, also posted sales in line with expectations, though it crept 0.4 percent lower.

"Vodafone and United Utilities posted results in-line with expectations, there was no surprise to the upside," said Tim Hughes, head of sales trading in London. "In the absence of more surprises, it's difficult to see much more room to the upside."

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Rio Tinto, Kazakhmys, Eurasian Natural Resources, Anglo American, Lonmin and BHP Billiton fell between 0.4 and 1.8 percent.

The mining index is up 13.4 percent this month and has more than doubled since December.

Elsewhere, moves were muted. Defensive pharmaceuticals edged higher; AstraZeneca added 0.9 percent, and Shire gained 0.6 percent.

Investors will also have the final reading of the University of Michigan's U.S. consumer sentiment index for July to assess in the afternoon.

U.S. stocks made strong gains overnight boosted by solid earnings news and positive economic data. However, after-hours results from tech giants Microsoft and Amazon failed to live up to expectations.

Investors will also be cautious ahead of the outcome of a key by-election result from Norwich, with the ruling Labour party expected to be ousted from the seat but the Conservative opposition also facing tough competition from other parties in the face of the House of Commons expenses scandal. (Reporting by Simon Falush; Editing by Dan Lalor)

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