* FTSE 100 up 0.5 percent
* Capital Shopping Centres buoyed by bid interest
* Banks rebound from recent falls
By Tricia Wright
LONDON, Nov 25 (Reuters) - Property stocks helped drive Britain's top share index higher on Thursday, led by Capital Shopping Centres on the back of bid interest in the group, while banks continued to rally from recent lows.
By 0918 GMT the FTSE 100 index was up 29.10 points, or 0.5 percent, at 5,686.20, on a day when activity is expected to be subdued in the absence of U.S. markets, closed for the Thanksgiving Day holiday. The index closed 1.4 percent higher on Wednesday.
"With Thanksgiving unfortunately it's going to be a very lacklustre day. There's not a great deal to drive the markets today ... you may see a little bit of movement but it's not going to be on any great volumes," Phil Gillett, a sales trader at Spreadex, said.
The top of the blue-chip leader board was loaded with property stocks. Capital Shopping Centres surged ahead by 9.4 percent, with traders citing a statement from the firm indicating bid interest from U.S. real estate company Simon Group.
Sentiment surrounding the sector was lifted, with Hammerson , up 5.1 percent, British Land 3.1 percent firmer, and Land Securities adding 2.6 percent.
"Simon Property in U.S. is said to be looking at CSC, hence the strength in other REITs," a trader said.
Risk sensitive banks built on gains from the previous session, having been hurt in recent days by concerns over the Irish financial crisis and euro zone debt.
Lloyds Banking Group was the best sector performer, climbing 0.9 percent, followed by Barclays, 0.8 percent ahead.
Miners, which have also come under pressure recently, extended their advance from Wednesday. Xstrata was among the top FTSE 100 risers, up 2 percent.
Upbeat broker sentiment aided Marks & Spencer, up 1.6 percent, with Arden Partners raising its rating on the shares to a "buy" from "neutral", citing supportive trading conditions.
Energy stocks limited the FTSE 100's gains, with BP off 0.4 percent, as the crude price eased.
Autonomy dipped 0.4 percent, having fallen as much as 9 percent on Wednesday when it said talks on an acquisition deal it is pursuing had given rise to an additional opportunity, which may delay an outcome.
Regarding domestic economic data, UK November CBI distributive trades data is due at 1100 GMT. (Editing by Greg Mahlich)