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FTSE 100 ends slightly higher

UK shares end little change in thin range

LONDON: UK shares ended little changed after trading in a narrow range for most of the day, dealers said.

A lack of company and economic news deprived shares of any fresh impetus and with follow-through from the holiday weekend, activity remained muted.

"We're holding steady but it's very stock selective," said a dealer. "There's no overall picture or lead at the moment."

"A lot of people are away on holiday, once those are out of the way next week things might pick up," he added.

Blue chips held above the 3,500 level for much of the day, dipping below it only briefly. An early rally after yesterday's 22 point loss quickly ran out of steam.

Shares were expected to continue to drift ahead of U.S. employment data due out on Friday. The employment figures are seen as a likely indicator of future U.S. interest rate policy.

Gains today on Wall Street, however, were expected to help support current UK market levels.

"Until Friday it's more of the same," said one dealer. "But with Wall Street steadying a little we'll probably hold around here.

The Dow moved higher, helped by buying interest in technology stocks, which continued their rally from the previous day. Media stocks also featured, boosted by news that Time Warner Inc and Turner Broadcasting were in merger talks.

At the London close, the Dow was up 7.05 points at 4,615.49.

U.S treasuries were firm but range trading after an upward revision in U.S. second quarter GDP capped an early rally.

GDP was revised to a 1.1 percent rise, against forecasts of a 0.5 percent increase.

Activity in Treasuries is seen limited in front of the U.S. jobs numbers on Friday. Shares in Kingfisher Plc were down 6p to 457 after a large switch late Tuesday out of Kingfisher into Storehouse Plc.

Rexam Plc gained 7p to 434 ahead of a presentation to institutional investors this evening.

Vodafone rose 4p to 270, after broking house Smith Barney raised its recommendation on the company to buy from outperform. -Reuter