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Britain's FTSE bounces after post-Brexit slump
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* FTSE bounces 2.1 percent, led by banks and travel stocks
* Legal & General (LSE: LGEN.L - news) says balance sheet strong post EU vote
* Redrow (LSE: RDW.L - news) buoyed after saying profit to beat expectations
By Alistair Smout
LONDON, June 28 (Reuters) - British shares rebounded on Tuesday following two straight sessions of substantial falls, led higher by banks and travel stocks which were the hardest hit in the aftermath of Britain's decision to leave the EU.
The FTSE 100 rose 2.1 percent to 6,106.53 by 0837 GMT, with all but four stocks in positive territory.
The index fell more than 5 percent in the two sessions after Thursday's Brexit vote, wiping nearly 100 billion pounds ($130 billion) off the value of the UK's blue-chip companies.
Sterling has also fallen sharply and expectations are rising of a recession.
Britain suffered further blows to its economic standing on Monday as ratings agencies cut its sovereign credit score.
Bank stocks, which had fallen 16.4 percent in two days, rallied 3 percent. Travel and leisure stocks rose 2 percent after a 12-percent slump.
Top FTSE 100 riser was Legal & General, up 9 percent after it said its balance sheet had proven resilient in the vote's aftermath and that it had trimmed its exposure to riskier assets beforehand.
It (Other OTC: ITGL - news) remains well below its pre-referendum levels, however, having dropped 30 percent to a three-year low in the days following the referendum.
The mid-cap FTSE 250 rose 3 percent, with the domestically focussed index having slumped 13.7 percent since Thursday.
"The FTSE 250 has declined quite sharply over the past couple of days, and you can't sugarcoat that ... and what's happened now will affect the UK economy more than it will affect the global outlook," CMC Markets (LSE: CMCX.L - news) ' chief market analyst, Michael Hewson, said.
"But we're still above 2014 lows for the index, and so there will be good buying opportunities around these levels.
The FTSE was buoyed by housebuilder Redrow.
Redrow shares were down 30 percent on concerns about the impact that leaving the EU would have on the housing market.
UBS (LSE: 0QNR.L - news) said it was a strong trading update but that it was too early to assess that impact. It has a "buy" rating on the stock.
Shares (Berlin: DI6.BE - news) in Ocado were up 10.7 percent after the food retailer reported a profit rise.
"Online supermarket Ocado continues to prosper with the group gaining market share on the seemingly inexorable rise of the armchair shopper," AJ Bell's Investment Director, Russ Mould, said.
"Ocado is benefiting from its tie-up with Morrisons and pre-tax profits are increasing, albeit at a slower rate, despite price deflation," he said.
Shares British challenger bank Shawbrook Group Plc (LSE: SHAW.L - news) fell 13.9 percent, however, after it said it expected to book an additional impairment charge due to some irregularities in its asset finance business and that CFO Tom Wood had resigned. (Editing by Louise Ireland)
