17:17GMT 29Oct2008-UK Small Caps close 2.1 pct higher

The FTSE Small Cap index closes 2.1 percent higher, but underperforms the blue chips and mid caps, up 8.1 percent and 5.1 percent, respectively, ahead of the U.S. Federal Reserve's interest rate decision.

Shares in spreadbetting firm Worldspreads close nearly 6 percent higher as it says first-half profits double, adding it is confident of exceeding full-year targets, prompting Collins Stewart to repeat its "buy" recommendation and 125 pence target price.
China-based emission-cutting engineer Tinci Holdings plunges 67.7 percent after warning its full-year profit would fall short of expectations as declining sales lead to a significantly reduced second-half profit.

Reuters Messaging rm://tricia.wright.reuters.com@reuters.net
16:47GMT 29Oct2008-Stagecoach falls on London job market jitters

Shares in Scottish bus and rail company Stagecoach fall as much as 8.5 percent, making them a top loser on a 7 percent stronger FTSE 100.
Analysts say a solid trading update is overshadowed by worries mounting job losses in London which could hurt its business ferrying commuters in and out of the British capital.
"Although SGC remains a top quality operator, we do have concerns over cyclicality in the rail business, given SW Trains' high reliance on London traffic, including commuters," analysts at UBS write in a research note, adding that they retain their "sell" rating on the stock.
Investec analyst Joe Thomas agrees, saying South West Trains growth rate has slowed, although he stresses it is being offset by strong growth elsewhere in the company. He also points out Stagecoach has a track record for prompting earnings upgrades from analysts and that investors may be disappointed it has not done so this time round.
For more double click on

Reuters Messaging rm://malcolm.locke.reuters.com@reuters.net tf.TFN-Europe_newsdesk@thomson.com ak

COPYRIGHT

Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.