Britain's FTSE closes May with gains, led by broker upgrades

* Blue-chip FTSE 100 index up 0.2 pct

* Associated British Foods (LSE: ABF.L - news) up on Goldman upgrade

* UK Gfk Survey hit other consumer staples

* Weir gains as Credit Suisse (NYSE: CS - news) boosts forecasts

(Recasts, adds detail, quote, fresh prices)

By Alistair Smout and Atul Prakash

LONDON, May 29 (Reuters) - Britain's top share index rose on

Friday, capping a strong monthly performance in May, with gains

led by Associated British Foods and Weir Group

after broker upgrades.

The blue-chip FTSE 100 index was up 15.74 points, or

0.2 percent, at 7,056.66 by 1043 GMT, up about 1.4 percent this

month.

The index has rallied 3.6 percent since lows hit on May 7,

boosted by a decisive Conservative election victory that

investors said removed substantial uncertainties over regulation

and the economy.

The rally has taken the index firmly over the 7,000 level,

where there is also support from the 30-day moving average, to

just 0.9 percent away from an all-time high of 7,122.74 hit in

April.

Traders said positioning for the end of the month helped the

FTSE into positive territory after it fell in early trade.

"As it's the last (trading) day of the month, the fall was

unlikely to be sustained," Zeg Choudhry, managing director of

LONTRAD, said.

"There is still downside potential, but the index managed to

hold 7,000. The longer that holds, the bigger support it

becomes."

Associated British Foods, owner of British Sugar and

budget fashion retailer Primark, rose 2.4 percent to 3,022

pence.

Traders attributed the rise to Goldman Sachs (NYSE: GS-PB - news) lifting its

rating on the share to "buy" from "sell" and increasing its

price target to 3,120 pence from 2,755 pence.

"Our analysis of the U.S. market suggests that Primark's

launch (due in autumn 2015) will be a success," Goldman Sachs

said in a note.

Other consumer staple stocks fell, trimming 3 points off the

FTSE 100.

Weir Group was also among top gainers, after Credit Suisse

raised its target price on the stock and maintained its

"outperform" rating.

A survey from market research company GfK showed optimism

about the British economic situation over the next 12 months

fell to its lowest level since January, while Britons also

become less upbeat about their personal financial prospects.

"The British Gfk survey further dampened investor

sentiment," Securequity trader Jawaid Afsar said.

(editing by John Stonestreet)