BETTER than expected half time results from De Beers helped push the

shares ahead 34p to 1317p after the diamond giant increased attributable

earnings 8.6% to $353m (#238m).

The group has already announced that it enjoyed the best ever half

yearly sales performance with a 42% surge to $2543m (#1700m).

That was a result of a combination of fewer Angolan and Zairean

''submarine'' or illicit uncut diamonds reaching Antwerp because of

increasing civil strife in those two countries and the relaxation of

Indian exchange control leading to increased demand from diamond cutters

in that country.

There were also fewer Russian polished diamonds in the market.

However, the diamond account margin came under pressure with a

year-on-year fall from 21.2% to 14.7% with fewer large stones being

sold.

There will also be an increased proportion of diamonds coming from

independent producers such as Botswana and Namibia which are lower

margin than De Beers' own production in South Africa.

Interim group pre-tax profit actually showed a slight (6%) decline to

$444m because of lower investment income and interest received although

these were offset by a lower tax charge to boost the earnings figure.

The market is looking for an increase in earnings from $491m to about

$550m or 140 cents per share.

The interim dividend has been held at 25.2 cents (17p) and it is

feasible there could be a slight recovery in the total from last year's

79.1 cents for a 4% yield.