Aug. 19 (Bloomberg) -- U.K. stocks rose. William Hill Plc, Britain's second-largest betting chain, and hotel operator Hilton Group Plc advanced after analysts at UBS AG advised investors buy the shares.

The benchmark FTSE 100 Index gained 18.9, or 0.4 percent, to 4374.1 as of 9:44 a.m. in London. The FTSE All-Share Index added 0.5 percent to 2172.26.

The FTSE 100 may post its third gain in four days today, after falling in the last two weeks on concern soaring oil prices may erode corporate profit. Recent declines have left some stocks cheap relative to their earnings outlook, investors said.

``We've seen some stocks fall a lot, so the medium-term horizon offers good opportunities to buy,'' said Nick Martin, who helps manage $2.2 billion at Hiscox Investment Management in London. He said he still expects companies to boost earnings.

William Hill gained 13 pence, or 2.5 percent, to 529. Hilton Group, operator of Hilton hotels outside the U.S. and of the Ladbrokes betting outlets, rose 3.25 pence, or 1.3 percent, to 260.5. UBS increased its recommendation on both stocks to ``buy'' from ``reduce.''

The analysts cited prospects for increased growth in the betting business and raised their 2004 per-share earnings estimates for William Hill by 6.6 percent to 40.3 pence, and for Hilton by 7.2 percent to 17.9 pence.

HSBC Holdings Plc, Europe's biggest bank by market value, rose on reports it's pulled out of a bid for Tokyo-based consumer lender Takefuji Corp. JJB Sports Plc shares plunged 11 percent after Britain's largest sporting-goods retailer said profit this fiscal year will miss forecasts.

U.K. stock benchmarks remained higher even as the government said U.K. retail sales declined for the first time in 14 months in July, falling 0.4 percent after a 1 percent increase the previous month, as higher interest rates deter consumer spending. Economists had expected a 0.3 percent decline.

The Bank of England has raised its benchmark interest rate five times since November. It currently stands at 4.75 percent.

The following stocks are making significant gains or losses in London. Symbols are in parentheses after the company name.

Carnival Plc (CCL LN) added 46 pence, or 1.8 percent, to 2,605. Analysts at Credit Suisse First Boston raised their estimate for 2004 per-share earnings at the world's largest cruise operator by 3.3 percent to $2.22, citing increasing bookings.

HSBC Holdings Plc (HSBA LN) rose 9 pence, or 1.1 percent, to 829.5 pence. Europe's biggest bank by market value pulled out of a bid for Tokyo-based consumer lender Takefuji Corp., the Financial Times reported, citing bankers close to the transaction it didn't identify.

Takefuji, with a market value of $9.7 billion, is for sale after its founder was put on trial for allegedly ordering illegal wiretaps. London-based HSBC bid for Takefuji to win a share of Japan's $96 billion consumer finance market, people familiar with the situation said last month.

JJB Sports Plc (JJB LN) plunged 24 pence, or 11 percent, to 192.5, heading for its biggest fall since June 2003. Britain's largest sporting-goods retailer said profit this fiscal year will miss forecasts after recent wet weather resulted in lower sales of T-shirts and shorts.

The company said its results will depend upon its performance during the Christmas period, though the forecast for profit before tax and goodwill and amortization of 88 million pounds ($161 million) probably won't be met. JJB anticipates a shortfall of around 20 percent, it said in a Regulatory News Service statement.

Sygen International Plc (SNI LN), whose technology is used to identify genetic traits in breeding animals, rose 2.5 pence, or 7.6 percent, to 35.5. The company agreed to supply gene technology to Triumph Foods LLC for about 10 percent of U.S. breeding pigs.

Triumph will use the technology to enhance the leanness, texture and color of 550,000 sows. No financial details were disclosed.

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

Last Updated: August 19, 2004 05:14 EDT