UK STOCKS REMAINED FIRM ON THURSDAY, ADDING TO THE PREVIOUS SESSION'S RALLY ON HOPES OF A PAUSE IN U.S. INTEREST RATE INCREASES AND LED BY SUPPORT SERVICES GROUP CAPITA , WHICH FLEW HIGHER AFTER FORECAST-BEATING RESULTS, ACCORDING TO REUTERS. THE FIRM, WHICH RUNS LONDON'S 'CONGESTION CHARGE' ON VEHICLE USERS, SAW ITS SHARES RISE OVER 7 PERCENT TO A FOUR-YEAR HIGH AFTER POSTING A 24-PERCENT JUMP IN INTERIM PROFITS. STOCKS MOST EXPOSED TO THE U.S. AND TO FINANCIAL MARKETS ALSO RALLIED, A DAY AFTER FEDERAL RESERVE CHAIRMAN BEN BERNANKE DELIVERED THE CLEAREST SIGNAL YET THAT THE TWO-YEAR CYCLE OF U.S. INTEREST RATE INCREASES IS NEARING AN END. FUND MANAGER AMVESCAP ADDED 2.7 PERCENT AND BANKS FORMED THE STRONGEST SECTOR WITH BARCLAYS AND ROYAL BANK OF SCOTLAND BOTH UP OVER 1 PERCENT. MINER XSTRATA WAS ALSO IN THE SPOTLIGHT, UP 3.8 PERCENT AFTER SWEETENING ITS HOSTILE TAKEOVER OFFER FOR CANADA'S FALCONBRIDGE . BY 0923 GMT, THE FTSE 100 INDEX WAS UP 27.6 POINTS AT 5,805.6 IN A RALLY THAT SENT NINE OUT OF EVERY TEN STOCKS HIGHER. GLOBAL EQUITIES AROUND THE GLOBE JUMPED ON BERNANKE'S SPEECH, SENDING NEW YORK'S DOW AVERAGE UP 2 PERCENT AND TOKYO'S NIKKEI 3 PERCENT HIGHER OVERNIGHT. "I THINK THERE HAD BEEN AN EXPECTATION THAT U.S. RATES WOULD HAVE TO GO HIGHER. NOW THERE IS AN EXPECTATION THAT THEY MAY HAVE TO GO UP, BUT NOT BY THAT MUCH. EVERYONE IS JUST A BIT MORE AT EASE ABOUT THE SITUATION BECAUSE THE IDEA OF HIGH U.S. INTEREST RATES WAS AN ISSUE WHICH WAS HOLDING THE MARKET BACK," SAID JIM MCCAFFERTY, HEAD OF RESEARCH AT SEYMOUR PIERCE. CUT OFF MID-CAP COMMUNICATIONS PROVIDER COLT TELECOM WAS A PROMINENT FALLER, SLUMPING 9 PERCENT AFTER REPORTING A DROP IN ITS SECOND-QUARTER SALES. "CONSENSUS FOR THIS YEAR NOW LOOKS CHALLENGING, IN OUR VIEW, AND VISIBILITY ON THE LONGER-TERM GROWTH OUTLOOK IS POOR," SAID ANALYSTS AT MORGAN STANLEY AS THEY CUT THEIR RATING ON THE BUSINESS COMMUNICATIONS PROVIDER. FURNITURE GROUP MFI ALSO FELL, LOSING OVER 5 PERCENT AFTER IT POSTED AN INTERIM LOSS AND REVEALED GROUP REVENUES DOWN 12 PERCENT. TALKS ARE CONTINUING OVER THE POSSIBLE SALE OF ITS RETAIL ARM AND ANALYSTS AT PANMURE SAID IT WAS NOT CLEAR HOW MUCH AN EXIT FROM THE BUSINESS WOULD COST MFI. "WE CONTINUE TO BELIEVE THE STOCK IS EXPENSIVE GIVEN THE PROBLEMS IT FACES," THE BROKERAGE ADVISED CLIENTS. TECHNOLOGY STOCKS GOT THE GREEN LIGHT, WITH WIRELESS TECHNOLOGY COMPANY CSR TOPPING THE FTSE 250 LEADERBOARD, UP 6.4 PERCENT. ANALYSTS SAID SENTIMENT HAD BEEN BOOSTED BY UPBEAT EARNINGS FROM APPLE . THEY ADDED THE STOCK HAD RECENTLY LAGGED THE MARKET AND WAS DUE A BOUNCE, HAVING FALLEN 25 PERCENT SINCE THE BEGINNING OF JULY TO TUESDAY'S FOUR-MONTH LOW OF 991P. BACK AMONG LARGER STOCKS, AIRLINE BRITISH AIRWAYS WAS UP 2.9 PERCENT AS OIL PRICES FELL FOR A THIRD STRAIGHT SESSION AND AS SPECULATION RETURNED OF A BID FOR THE CARRIER FROM DUBAI'S EMIRATES. EMIRATES COULD NOT BE IMMEDIATELY REACHED TO COMMENT BUT LAST MONTH SAID IT HAD NO PLANS TO BID FOR BA.
