* FTSE up 0.4 percent
* Financials, miners lead as investors hungry for risk
* Retailers wane after J Sainsbury update
By David Brett
LONDON, Jan 12 (Reuters) - Britain's top shares rose on Wednesday as investors remained upbeat on the health of corporates despite ongoing macroeconomic concerns, with financials and mining stocks leading on the upside.
By 1200 GMT, the FTSE 100 was 20.97 points, or 0.4 percent, higher at 6,046.82 after gaining 1 percent on Tuesday.
Traders said banks, the biggest risers on London's blue-chip index, were boosted by investors' appetite for risk on the back of the health of global corporates, and by talk of potential stake sales.
"Banks further contributed to strength in the index as comments circulated that state-owned banks are courting suitors for their government stakes," Giles Watts, head of equities, City Index, said.
Barclays rose 2.2 percent, while HSBC was up 3.2 percent.
There was some relief after Portugal sold the maximum amount of bonds it had targeted, with yields falling on the 10-year issue but rising in the five-year sector.
Insurers Legal and General and Aviva gained 2.8 and 2.2 percent respectively, while mid-cap fund managers Gartmore Group and Henderson Group added more than 10 percent each after the two announced a tie-up.
Analysts at Canaccord said the acquisition "comfortably offered" at least 10 percent earnings enhancement for Henderson in the financial year 2011 on an annualised basis.
MINERS RALLY
Miners were supported by firmer metals prices. Kazakhmys and Vedanta, rose 2.7 and 2.9 percent respectively as Deutsche Bank upgraded both to "buy".
Retailers weighed on the downside after J Sainsbury, down 2.5 percent on valuation grounds, reported a trading update. Tesco fell 1.1 percent with traders citing pressure from J Sainsbury on its non-food business.
"The creation of a sizeable non-food business is increasing the destination attraction of Sainsbury's largest stores, and this appears to be achieved mostly at a cost to Tesco," said broker Jefferies International.
Vodafone was the biggest drag on the index, shedding 1.2 percent, after the mobile phone heavyweight was downgraded to "equal weight" from "overweight" in a bearish note on the European telecom sector from Barclays.
Ex-dividend factors clipped 0.3 points from the FTSE 100 index, with British Land and Lonmin losing their payout attractions.
On the macroeconomic front, imports of oil and aircraft pushed Britain's goods trade deficit to a record high in November.
Technical analysts maintained a cautious outlook for the FTSE 100.
"Longer-term traders should pay close attention to how the FTSE reacts at a pair of bottoms, at 5,939.89 and 5,911.02," said James A Hyerczyk, an analyst at Autochartist.
"The penetration of both of these will signal a bearish shift in investor sentiment."
Across the Atlantic, Wall St