UK's FTSE edges up, yet further gains seen limited
* FTSE 100 edges up 0.1 percent, lifted by bank and mining stocks
* Traders see further gains as limited
* Concerns over Spain and global economy seen capping further gains
By Sudip Kar-Gupta
LONDON, Oct 3 (Reuters) - Britain's benchmark share index edged higher on Wednesday, boosted by rising bank and mining stocks, although traders saw further gains as being limited due to underlying concerns over weak economic growth and Spain's debt crisis.
The blue-chip FTSE 100 index was up 0.1 percent, or 4.25 points, at 5,813.70 points around midday.
Signs of the index holding above the 5,800 point level -- seen by many technical traders as key to propelling further gains -- have enabled modest, short-term increases on the FTSE 100 this week.
The FTSE 100 has also stayed above the 200-day simple moving average level of around 5,700 points -- again seen by technical traders as leaving room for more rises.
However, dealers said lingering uncertainty over when Spain may seek a full sovereign bailout could cap further moves.
"I see the market trading sideways to slightly softer. We need a catalyst, and that catalyst has to be Spain. The market is concerned that there might be a delay to Spain seeking aid," said Hartmann Capital trader Basil Petrides.
SPECULATION OF CHINA STIMULUS LIFTS MINERS
The FTSE banking sector rose 0.7 percent on expectations it will outperform the market following stimulus measures introduced by central banks from July onwards.
The FTSE mining sector rose 0.3 percent, with traders citing persistent speculation of fresh stimulus measures from China -- the world's biggest metals consumer -- as the main reason.
Miner Evraz topped the FTSE 100 leaderboard, rising 2.3 percent, while Glencore and its merger partner Xstrata rose around 1.5 percent.
EGR Broking managing director Steven Mayne said he had bought shares in miners Anglo American and Petra Diamonds over the last three days, along with British American Tobacco stock.
However, Mayne added he did not expect the FTSE 100 to advance much further in the coming sessions, due to the underlying concerns over the global economic slowdown and the euro zone debt crisis.
"I still struggle to see a significant upside in this market," he said.
(Reporting by Sudip Kar-Gupta/editing by Chris Pizzey, London MPG Desk, +44 (0)207 542-4441)
Keywords: MARKETS BRITAIN STOCKS/MIDDAY