Oct. 8 (Bloomberg) -- U.K. stocks climbed, led by raw- material producers after Alcoa Inc. kicked off the earnings season in the U.S. with better-than-expected profits and metals prices advanced.

Vedanta Resources Plc jumped 4 percent after reporting an increase in production and as copper gained in London. BT Group Plc, the U.K.’s largest phone company, rallied as Exane BNP Paribas advised buying the shares.

The benchmark FTSE 100 Index added 45.74, or 0.9 percent, to 5,154.64, its third gain this week. The FTSE All-Share Index climbed 0.9 percent and Ireland’s ISEQ Index rose 1.5 percent.

The FTSE 100 has surged 46 percent since this year’s low on March 3 amid speculation the worst of a global slowdown is past. Alcoa, the largest U.S. aluminum producer and the first Dow Jones Industrial Average company to release results for the three months through Sept. 30, reported an unexpected third- quarter profit yesterday and said that global consumption of the metal will climb 11 percent in the second half.

“The hope is that we will have a supportive third-quarter earnings season, and profits should bounce back strongly in 2010,” said Henk Potts, a London-based fund manager at Barclays Stockbrokers Ltd., which oversees about $45 billion. “That is a powerful mix that can help us extend the explosive rally we’ve had since March.”

The Bank of England’s Monetary Policy Committee kept the country’s benchmark interest rate unchanged at 0.5 percent today and its asset-purchase plan at 175 billion pounds ($278 billion), as the central bank tries to stimulate economic growth.

Copper Gains

Vedanta Resources jumped 4 percent to 2,190 pence. The largest copper producer in India raised fiscal second-quarter iron ore output 27 percent from a year ago on “improved efficiencies” in mining, while aluminum production climbed 13 percent.

Antofagasta Plc, which mines for copper in Chile, rose 4.6 percent to 834.5 pence. Rio Tinto Group, the world’s third- largest mining company, gained 3.7 percent to 2,840.5 pence.

Copper for delivery in three months climbed 3.7 percent to $6,320 a metric ton in London. Nickel, lead, zinc and aluminum prices also rallied.

BT advanced 3.1 percent to 134.8 pence. Exane BNP raised its recommendation to “outperform” from “underperform” and said the shares are “the best vehicle to play the recovery of the U.K. fixed market.”

The following stocks also rose or fell in the U.K. and Ireland. Stock symbols are in parentheses:

U.K. Companies:

Burberry Group Plc (BRBY LN), Britain’s largest luxury goods maker, rose 28 pence, or 5.6 percent, to 532.5 pence. Analysts at Nomura Holdings Inc. today reiterated their “buy” recommendation on the shares before a trading update on Oct. 14, saying the retailer can continue to gain market share and improve its profitability.

Halfords Group Plc (HFD LN) jumped 25.7 pence, or 7.1 percent, to 390 pence. The U.K.’s biggest retailer of car parts and bicycles reported an increase in second-quarter sales and said it expects first-half profit to rise more than 20 percent compared with last year.

Ladbrokes Plc (LAD LN) tumbled 9.8 pence, or 5.4 percent, to 171.4 pence. The owner of more than 2,300 U.K. and Irish betting shops plans to raise 275 million pounds in a rights offer and said profit on soccer wagers was wiped out after too few games ended in draws.

Lloyds Banking Group Plc (LLOY LN) declined 1.35 pence, or 1.4 percent, to 94.31 pence. The bank that has the government as the biggest stakeholder said it will keep its options open after the Financial Times reported the lender is preparing to raise 15 billion pounds in a share sale and leave the government’s asset insurance program.

Rank Group Plc (RNK LN) climbed 13 pence, or 2.4 percent, to 555.5 pence. The U.K.’s second-largest casino owner said sales rose in the 14 weeks to October 4.

Irish Companies:

C&C Group Plc (GCC ID) lost 8 cents, or 2.7 percent, to 2.92 euros. The Irish maker of Magners cider said first-half profit fell 9.9 percent as economic conditions weakened, and said trading conditions were “more challenging” in the last two months.

To contact the reporters on this story: Alexis Xydias in London at axydias@bloomberg.net.

Last Updated: October 8, 2009 12:20 EDT