UK Stocks - Factors to watch on Dec 31

Britain's FTSE 100 index is seen gaining 18-19 points at the start of the New Year's Eve half-day session, on track for its biggest yearly gain since 1997.

According to financial bookmakers, the blue chip index is set to rise as much as 0.4 percent, after closing down 39.75 points at 5,397.86 on Wednesday,the last full trading session of 2009, with the UK market set to close at 1230 GMT on Thursday.

The UK benchmark index has rallied 56 percent since hitting a six-year trough in March and is up about 22 percent for the year.

Trade for the last day of 2009 is certain to be light, with some Asian and European markets closed for a public holiday.

In terms of economic news, Britain's Nationwide Building Society will publish its December house price survey at 0700 GMT.

The BoE credit conditions survey for the fourth quarter of 2009 will be released at 0930 GMT.

On the other side of the Atlantic, U.S. jobless claims are scheduled for release at 1330 GMT, as well as the New York ISM index of business activity and optimism.

* GLOBAL MARKETS-Asia stocks set for near 70 pct gain in 2009

* Wall St ends a tad higher; Dow, Nasdaq at '09 highs

* FOREX-Dollar firm on yen; still nursing losses for 2009

* TREASURIES-Long-term yields lower after 7-yr note auction

* Oil near $80, on track for strongest gain in decade

* PRECIOUS-Gold steadies after dollar's rise dulls price

* METALS-Copper hits 16-month high to end stellar year

UK stocks to watch on Thursday:

CADBURY

The trust behind U.S. confectionery giant Hershey is preparing to meet next week to discuss launching a solo bid for the British chocolate-maker,the Daily Mail said.

The Takeover Panel has given Cadbury three extra days to put together a trading statement that could prove vital in its defence against Kraft Foods' hostile 10.3 billion pound bid, said the Financial Times.

BANKS

Virgin Money has opened talks with potential private equity partners as it looks to be among the first flood of "new entrants" into the financial sector next year as banks are broken up, the Daily Express said.

JD WETHERSPOON

The pub operator was thought to be in advanced talks on Wednesday night over the acquisition from 3D Entertainment of 12 late-night venues in a deal worth around 4.3 million pounds, said the Times.