Drugmaker AstraZeneca drives FTSE to multi-week high

* FTSE 100 index rises 0.7 percent

* Bid speculation boosts AstraZeneca (EUREX: AZNF.EX - news)

* Analysts target further 1 pct gain on index

By Tricia Wright

LONDON, April 24 (Reuters) - Gains in AstraZeneca (NYSE: AZN - news) driven by

bid speculation helped propel Britain's FTSE 100 to six-week

highs on Thursday, with analysts seeing scope for more gains on

the index after it moved above its recent range.

AstraZeneca climbed 5.3 percent to a record high,

extending this week's strong advance on Pfizer (NYSE: PFE - news) 's

reported interest alongside a burst of other pharma deal-making.

Britain's second-biggest drugmaker made no reference to the

Pfizer bid talk in its results statement on Thursday, noting

progress with new cancer drugs that might revive its fortunes as

it posted a 17 percent fall in core earnings per share.

The cancer drugs are seen as a big draw for the U.S. group.

Analysts at Deutsche Bank (Xetra: DBK.DE - news) said the figures looked consistent

with full-year guidance and, to a degree, represented the 'calm

before the storm' as comparisons should worsen from the second

quarter, adding that much of the focus in AstraZeneca remained

on deal making.

"The investment community seems to be focusing on the

corporate action theme at present rather than the fundamental

core near-term earnings," Jordan Hiscott, senior trader at

ayondo markets, said.

"I think this theme will continue until either Pfizer makes

a confirmed statement on its intentions or an outright bid for

the stock."

Trading volume in AstraZeneca was robust, already around its

90-day daily average by mid-session, contrasting with the

broader FTSE 100 on just a fifth of its average.

AstraZeneca was the biggest single boost to the UK benchmark

by far, contributing around a quarter to the index's points

gain.

The FTSE 100, by 1103 GMT, had risen 46.76 points,

or 0.7 percent, to 6,721.50 points, trading at its highest level

since March 10. This pushed the index above the top of the range

it has traded in over the past weeks, whose peak was 6,706

points.

"That's quite important technically; ideally we'd like to

see a close above there to confirm the upside traction,"

Barclays Capital analyst Lynnden Branigan said.

Branigan targeted 6,785 - the 78.6 percent Fibonacci

retracement of the down move from late February to late March -

should the FTSE 100 close above 6,706. That would take it some 1

percent above current levels.

($1 = 0.5960 British pounds)