By Simon Falush LONDON (Reuters) - Britain's top share index gained 1.2 percent early on Monday, as improved investor sentiment lifted banks and energy and mining stocks rose, tracking buoyant commodity prices. By 0749 GMT the FTSE 100 was up 48.54 points at 4,078.21 after losing 2.3 percent to close 95.30 lower on Friday. Investors took comfort from U.S. employment data on Friday which, while coming in at a 25-year high, were no worse than feared, and Asian stocks started the week on strong form, with some indexes rising to their highest level in six months. Improved risk appetite lifted banks which have been sensitive to broader market moves. Banks were also lifted by the robust response from investors to HSBC's record $18.9 billion rights issue which was 96.6 percent subscribed. "The rights issue went particularly well, and so we're seeing a read-across to the rest of the sector," said Richard Hunter, head of equities at Hargreaves Lansdown. "Bulls are putting their heads above the parapet on the basis that the global economy appears to be getting past the bottom, but the next test will be how robust earnings are." HSBC added 3.6 percent while Standard Chartered, Royal Bank of Scotland, Barclays and Lloyds Banking Group put on between 1.4 and 5.2 percent. Improved sentiment about the outlook for the global and UK economy lifted property companies with Land Securities topping the leaderboard up 8.7 percent and British Land up 7.9 percent. Heavyweight energy stocks added most points to the index, with crude rising to above $53 per barrel as improved risk appetite, reflected in gains in high-yield currencies, improved the demand outlook. BP, Royal Dutch Shell, BG Group, Tullow Oil and Cairn Energy added between 0.7 and 2.1 percent. Miners were also lifted as the improved investor mood lifted metal prices. Kazakhmys, Anglo American, Lonmin and BHP Billiton gained between 0.9 and 4.3 percent. But Rio Tinto fell 1.7 percent after the Sunday Times reported it has drawn up contingency plans to raise $8 billion in a rights issue, without citing sources. Defensive pharmaceutical stocks, which tend to underperform in a rising market, fell with AstraZeneca and GlaxoSmithKline down 0.8 and 1.1 percent respectively. Among the mid caps, ITV was a strong performer, up 6.2 percent after the Sunday Telegraph reported the British broadcaster is in the final stages of sounding out institutional investors about a rights issue or a placing with analysts saying it would mitigate balance sheet risks. | 
