STOCKS NEWS EUROPE-UK small caps close 0.3 pct higher

The FTSE Small Caps index closes 0.3 percent higher, outperforming falls of 0.6 percent on the FTSE 100 and 0.5 percent on the FTSE 250 .

Morgan Sindall gains 1.3 percent as the UK construction and regeneration group says it has been appointed preferred delivery partner for a 1.1 billion pounds contract at the Sellafield nuclear reprocessing plant.

Tethys Petroleum falls 17 percent as the explorer reveals preliminary data from its AKD07 appraisal well in Kazakhstan which traders say looks slightly disappointing.

"Whilst the initial drilling and electric log results show potential hydrocarbons in the Jurassic limestone sequence, the Dyna and Doris sands were found to be water bearing," says Seymour Pierce in a note.

The broker, however, calls the news "a minor setback" and reiterates its "buy" rating and 72 pence price target on Tethys.

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