Sept. 18 (Bloomberg) -- U.K. stocks posted a second weekly rise amid optimism money inflows and earnings growth will continue to fuel a six-month rally.

Standard Life Plc and Hammerson Plc climbed today as analysts advised buying the shares. Antofagasta Plc and Lonmin Plc both decreased more than 1 percent as metal prices fell. Lloyds Banking Group Plc fluctuated as the lender said it is considering alternatives to a government asset protection program.

The benchmark FTSE 100 Index added 0.2 percent to 5,172.89, extending the advance this week to 3.2 percent. The FTSE All- Share Index rose less than 0.1 percent today and Ireland’s ISEQ Index fell 0.4 percent, its first loss in 12 days.

The FTSE 100 has rallied 47 percent since March 3 as earnings beat estimates and economic releases showed the worst of a global recession may be past. The gains may go on because there are still piles of cash outside equity markets that have yet to participate in the rally, Citigroup Inc. strategists wrote in a report distributed today.

“The butchers, bakers, candle-stick makers and taxi drivers do not appear to be buying equities, yet,” the strategists at Citigroup wrote. “But, at least the sellers appear to have retreated to the shadows and there are some signs of returning confidence and investor risk appetite.”

Witching

Options on U.K. stocks and futures on the FTSE 100 expired today. The equity benchmark is also adjusted today to replace three of its members as part of a quarterly review.

Standard Life, Scotland’s biggest insurer, advanced 1.8 percent to 202.8 pence. The shares were raised to “buy” from “neutral” at Goldman Sachs Group Inc., which cited a low valuation, “solid cash flow” and higher asset balances.

Hammerson, the U.K. company that owns stakes in shopping malls such as London’s Brent Cross, jumped 2.6 percent to 439.5 pence. The stock was raised to “hold” from “sell” by Societe Generale SA analysts.

Antofagasta, which mines for copper in Chile, declined 1.2 percent to 766 pence, the first loss in four days. Lonmin, the third-biggest platinum producer, dropped 2.2 percent to 1,744 pence.

Copper slid 3.5 percent to $6,162 a metric ton in London, extending yesterday’s 0.6 percent drop in late trade. Nickel, lead and zinc prices also fell.

Lloyds

Lloyds fell as much as 4.1 percent and then rose 0.9 percent to 110.67 pence at the close. The U.K.’s biggest mortgage lender said it’s in discussions with the Treasury over possible alternatives to entering into a program to insure 260 billion pounds ($424 billion) of risky assets.

The bank has been forced to abandon a move to withdraw from the U.K. government’s asset protection plan after failing to raise enough capital to meet regulatory requirements, the Daily Telegraph said. The shares rebounded after Goldman Sachs Group Inc. reiterated a “conviction buy” recommendation on the shares.

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

British Land Co. (BLND LN) added 17 pence, or 3.3 percent, to 528. Blackstone Group LP agreed to buy 50 percent of Broadgate, the largest office complex in London’s main financial district, from British Land in a transaction that values the properties at 2.1 billion pounds ($3.4 billion).

BlueBay Asset Management Plc (BBAY LN) slid 17 pence, or 5.4 percent, to 298. The London-based manager of fixed income funds reported annual profit dropped by more than a half and said its management sold shares.

Tullow Oil Plc (TLW LN) dropped 66 pence, or 5.3 percent, to 1,179. The U.K. explorer that climbed 16 percent in London trading the past three days retreated after Chairman Pat Plunkett sold shares and Citigroup Inc. lowered its recommendation.

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

Last Updated: September 18, 2009 12:04 EDT