* FTSE 100 up 0.1 pct
* Diageo, IMI jump after results
* Barclays up 7.8 pct, leading banks higher
By Tricia Wright
LONDON, Aug 25 (Reuters) - Diageo and IMI were among the biggest UK blue-chip risers on Thursday as investors welcomed robust results from the pair, as Britain's top share index edged higher ahead of a key speech by Federal Reserve Chairman Ben Bernanke on Friday.
Diageo jumped 7.4 percent after the world's biggest spirits group unveiled full-year results ahead of forecasts, with Collins Stewart upgrading its rating on the stock to "hold", deeming the announcement of some medium-term guidance as a "clear positive".
"The market has been crying out for a more aggressive view on the medium-term prospects against a general sense that whilst Diageo has not necessarily done poorly over the years, it has not made the most of its unrivalled portfolio," analysts at Collins Stewart said in a note.
IMI was another strong gainer, 7.5 percent higher, after the engineer posted higher than expected first-half profits and said a slowdown in industrial demand in southern Europe and the UK had not hit order trends since the end of June, leading Panmure Gordon to repeat its "buy" stance on the stock.
Miners added the most points to the index for a second session as copper prices ticked higher, after a strong reading on U.S. durable goods orders on Wednesday brightened the demand outlook.
Kazakh miner Kazakhmys was the best off, up 7.2 percent after it posted a 20 percent rise in first-half underlying profit, boosted by stronger copper prices, and announced a surprise share buyback worth up to $250 million.
Commodities trader Glencore , meanwhile, added 1.9 percent as it met forecasts with a 50 percent rise in first-half profit.
The UK benchmark index had risen 2.96 points, or 0.1 percent, to 5,208.81 by 1119 GMT, having climbed 1.5 percent on Wednesday, hitting its highest close in a week.
The market focus remained firmly on a speech by Federal Reserve Chairman Ben Bernanke on Friday at a meeting of central bankers in Jackson Hole, Wyoming, which some investors hope will signal measures to support the struggling U.S. economy.
UBS, Citigroup and Credit Suisse have cut their economic growth forecasts, as various data and the outlook for corporate earnings has weakened.
FORECASTS COMING DOWN
Money managers, however, said this would not be cause for alarm, as it was really just investment banks catching up with disappointing economic news over the summer.
"Markets are quiet ahead of Bernanke speaking at Jackson Hole tomorrow," said Lex van Dam, hedge fund manager at Hampstead Capital, which has about $500 million of assets under management.
"The macro environment remains challenging with economic and company forecasts coming down. Having said that, a lot of this is known by now and there is a slow return to more risky assets," he said.
U.S. stock index futures
Banks were in demand, extending gains from the previous session, with traders citing cheap valuations and strength overnight from their U.S. peers.
Barclays led the sector higher, up 7.8 percent, while Royal Bank of Scotland firmed 4.7 percent, and Lloyds Banking Group climbed 4.6 percent.
Andrew Bell, chief executive of the 1.1 billion pound Witan Investment Trust, said that of the two main market concerns in August, namely over economic growth and the European sovereign debt situation, he would be more worried about the latter, particularly since by and large, growth forecasts have been lowered to what are still positive numbers.
"There's an issue for Europe (which is) ... can they square Germany's price for bailing out the periphery?" Bell said.
"They want to have everyone sign up to long-term fiscal prudence ... (but) is it possible to get everyone to sign up to that, and start to implement budget tightening measures, without clobbering growth so hard in the short-term that actually the attainment of budget balance moves further and further away?"
On the downside, Shire sank 4.1 percent after its bio-engineered skin substitute Dermagraft failed in a late-stage clinical trial for treating venous leg ulcers.
UBS lowered its target price in response, to 2,380 pence from 2,400p, while keeping its "buy" rating. (Editing by David Holmes)
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