Aug 2 (Bloomberg) -- U.K. stocks rose, led by BP Plc and Royal Dutch Shell Plc as oil traded above $60 a barrel.

``Oil stocks still offer good value,'' said Jane Coffey, head of equities at Royal London Asset Management in London, which manages $11 billion in stocks. ``They're throwing off a lot of cash at the moment.''

Mining stocks such as BHP Billiton advanced after Credit Suisse First Boston advised investors to buy shares in the industry.

The FTSE 100 Index rose 27.6, or 0.5 percent, to 5318.40 as of 2:52 p.m. in London. That's the highest since March 2002. The FTSE All-Share Index added 0.5 percent to 2661.39.

Ireland's ISEQ Index climbed 0.1 percent to 6816.17, as CRH Plc fell and Allied Irish Banks Plc gained ahead of its earnings.

The FTSE 350 Oil & Gas Index has added 25 percent this year, the second-biggest climber among the 34 groups on the broader benchmark. The Mining Index increased 24 percent, the third- largest increase. The FTSE 100 has climbed 10 percent this year.

``The market's done very well, it's an above average year already,'' said Richard Hughes, who manages 2.5 billion pounds in assets at M&G Investment Management. ``There may be a bit of pause into the autumn but with the results and dividends that we're seeing, the market is well supported.''

BP, BHP Billiton

BP, Europe's biggest oil producer, gained 6 pence, or 1 percent, to 631 pence. Shell, the region's second-largest, added 26 pence, or 1.5 percent, to 1,803 pence.

Crude oil for September delivery yesterday touched $62.30 a barrel in New York, the highest since trading began in 1983. The futures traded today at $61.34 a barrel in electronic trading on the New York Mercantile Exchange.

BHP Billiton, the world's biggest miner, added 12 pence, or 1.6 percent, to 802 pence, with Rio Tinto Group, the No. 3 mining company, gaining 34 pence, or 1.8 percent, to 1,910 pence. Antofagasta, which owns three Chilean copper mines, rose 11 pence, or 0.8 percent, to 1,335 pence.

CSFB said mining and chemicals were among industries that will benefit most from sustained global growth. The brokerage raised the recommendation on mining stocks to ``overweight'' from ``neutral.'' Chemicals shares were upgraded to ``neutral'' from ``underweight.''

Imperial Chemical Industries Plc, the largest U.K. chemicals maker, rose 5.25 pence, or 2 percent, to 268.25 pence.

CRH, an Irish supplier of building materials, dropped 18 cents, or 0.8 percent, to 23.27 euros.

Allied Irish Banks, Ireland's second-biggest lender, gained 20 cents, or 1.1 percent, to 17.95 euros. The bank will probably report a 13 percent increase in first-half profit as customers at home and in the U.K. borrowed more and it set aside less money for potential loan defaults.

Net income likely rose to 628 million euros ($768 million) from 554 million euros, according to the median estimate of five analysts surveyed by Bloomberg. Dublin-based Allied Irish is scheduled to publish earnings at 7 a.m. local time tomorrow.

The following stocks are making gains or losses in the U.K. and Irish markets. Symbols are in parentheses after the company names.

Ben Bailey Plc (BBC LN), a builder of homes in the north of England, dropped 42.5 pence, or 10 percent, to 397.5 pence. The company reported a slump in first-half profit amid higher costs and a slowdown in the housing market. Net income for the six months through June fell 17 percent to 4.32 million pounds ($7.66 million), the Mexborough, northern England-based company said.

Domnick Hunter Group Plc (DKH LN), the U.K. maker of air filters used by Diageo Plc to brew Guinness, jumped 82 cents, or 16 percent, to 599 pence. Parker Hannifin Corp., the world's largest maker of hydraulic equipment, agreed to buy Domnick Hunter for 215.7 million pounds to expand in air filters as demand from U.S. auto-makers wanes.

Parker, based in Cleveland, Ohio, will pay 605 pence a share for Domnick Hunter. That's 39 percent more than the stock's close on July 25, the day before Domnick Hunter said it had been approached.

Nestor Healthcare Group Plc (NSR LN), which supplies workers and services to U.K. hospitals, fell 18 pence, or 11 percent, to 148 pence. The company reported a first-half profit after a reorganization of the business, but said revenue fell almost 18 percent to 167 million pounds.

Profit for the first half was 3.5 million pounds compared with a loss of 48.4 million pounds a year ago.

PZ Cussons Plc (PZC LN), the maker of Imperial Leather soap, dropped 32 pence, or 2.6 percent, to 1,218 pence. The company said full-year profit fell 24 percent as the price of oil rose, making it more expensive to make some products and as it closed units in Russia and China. Net income dropped to 29 million pounds in the year ended May 31.

Smiths Group Plc (SMIN LN), which builds refueling equipment for Boeing Co. planes and anthrax-detection systems for the U.S. Postal Service, fell 20.5 pence, or 2.1 percent, to 937 pence. The company said it increased capital spending in the year ended July 31 and will report exceptional charges of 50 million pounds.

Full-year sales increased 11 percent and all four divisions are expected to achieve operating profit growth of at least 10 percent, it said.

TDG Plc (TDG LN), which distributes goods for Argos Plc and Littlewoods Plc, rose 4.75 pence, or 2.1 percent, to 226.75 pence. The company said first-half earnings increased 13 percent as the company benefited from cost cuts and more business in its contract logistics unit. Net income climbed to 2.7 million pounds.

XP Power Plc (XPP LN), a designer of parts to regulate power in electrical equipment, fell 9.5 pence, or 2.3 percent, to 412 pence. Revenue slipped 3 percent to 32.2 million pounds over the first half. The company said profit rose as sales in Europe and most of the U.S. offset a decline in its industrial business in the U.K. and northern California. Net income for the period ended June 30 was 2.7 million pounds compared with 2.1 million pounds a year earlier.

Irish Stocks:

Ryanair Holdings Plc (RYA ID), Europe's biggest low-fare airline by passenger count, rose 7 cents, or 1 percent, to 6.87 euros. First-quarter profit jumped 31 percent, beating estimates and reaching a record, on higher ticket prices and a surge in passengers.

Net income increased to 69.6 million euros ($85 million) for the three months through June, the Dublin-based carrier said. Profit beat the 60.6 million-euro median estimate of nine analysts surveyed.

To contact the reporter on this story: Sophie Hares in London at shares@bloomberg.net.

Last Updated: August 2, 2005 10:43 EDT