By Sudip Kar-Gupta and Atul Prakash
LONDON (Reuters) - Britain's top equity index closed higher on Thursday, with companies like ARM Holdings (L:ARM) and Hargreaves Lansdown (L:HRGV) gaining as their outlooks improved, although luxury-goods group Burberry slumped after its sales figures missed forecasts.
ARM Holdings gained 5 percent on encouraging results from Taiwan Semiconductor Manufacturing Co (TSMC) and a brighter outlook for the U.S. chip-maker Linear Technologies.
"TSMC forecast 10 percent smartphone growth in 2015, which is supportive for the wider market given many have predicted single-digit growth of late," Gary Paulin, founding partner at Aviate Global, said.
Hargreaves Lansdown rose 5.3 percent to 1,400 pence after leading banks raised their target prices for the company's stock, following its solid quarterly results on Wednesday.
JP Morgan raised its price target for Hargreaves Lansdown to 1,200 pence from 1,160 pence. RBC increased its target to 1,400 pence from 1,025 pence and raised its rating to "sector perform" from "underperform"
The blue-chip FTSE 100 index, which had fallen for the last three sessions, finished 1.1 percent higher at 6,338.67 points.
Among other sharp movers, Unilever (L:ULVR) shares rose 3.6 percent after the consumer goods group reported better-than-expected third-quarter sales.
But Burberry shares plunged 8.2 percent after a slowdown in China and Hong Kong led Burberry to miss forecasts for first-half sales growth and warn of an increasingly difficult environment for luxury goods.
"Given that Hong Kong comprises a 10th of the company's sales, a fall was to be expected. The extent of the fall, however, was an unpleasant surprise for investors," said Spreadex analyst Connor Campbell.
The FTSE was likely to be choppy while earnings season was underway, Beaufort Securities sales trader Basil Petrides said. He would look to sell FTSE positions if the index fell back to 6,250 points.
The FTSE is down around 4 percent since the start of 2015 and some 10 percent below the record high of 7,122.74 points it reached in April.