British blue chips closed higher on Wednesday as investors snapped up chemicals group ICI and engineering firm GKN, helping the FTSE-100 to fight back from two days of losses.
But weakness among mobile phone stocks kept the market's rise modest. Analysts said Vodafone's annual results on Tuesday, when the company failed to top expectations, had heightened concerns about UK margins in the sector.
MmO2, which gets over half its revenues from the UK, fell 1.3 percent, and Vodafone dipped 0.4 percent, adding to yesterday's five percent drop.
By the close of play, the FTSE-100 was up 20.3 points at 4,438.3 - well off its session high of 4,460.6 points but more than taking back small losses over the two previous sessions.
The FTSE has traded within a 210-point range so far this month and analysts said the market was unlikely to break new ground over the coming weeks.
"For the summer the market will probably trade sideways," said Stephen Adams, an investment manager with Aegon Asset Management.
"People want a bit more confidence on what's happening geopolitically. They'll want to see some further evidence that the economy in the US is on a sustainable upward path and that China can be slowed in a controlled fashion."
On Wall Street, the Dow Jones industrial average was down 0.2 percent by the time London closed. Oil continued to be a focus as NYMEX July crude oil hovered just below $41 a barrel.
ICI was by far the best blue chip performer. Shares in the maker of Dulux paints soared seven percent after the company told shareholders at its annual general meeting that it was cautiously optimistic about the outlook for its business.
"ICI has disappointed investors so much in the past that when we start seeing results, and the AGM statement and the trading outlook back up what management said they were going to do, people tend to sit up and take a bit more notice," said analyst Zac Phillips at broker Teather & Greenwood.
Engineer GKN also climbed after it agreed to sell its stake in helicopter maker AgustaWestland to Italian partner Finmeccanica for just over one billion pounds. The move will help GKN to cut debt and fund acquisitions. Its shares ended up 4.7 percent.
On the FTSE-250 index, glass maker Pilkington cruised 8.9 percent higher after telling the market it had cut debt by nearly a quarter and increased profits.
Pallet supplier Brambles was close behind with a 6.5 percent rise after it forecast a strong second half performance, while media buying firm Aegis jumped 5.4 percent as it said the advertising recovery was gathering momentum.
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