(Recasts, adds analyst comment and changes dateline to London)

By Polina Devitt

LONDON, June 26 (Reuters) - Buying by computer-driven

funds helped to push copper prices higher for the first time in

four sessions on Wednesday, but concerns about current demand in

top metals consumer China, rising stocks and stronger dollar

capped gains.

Benchmark copper on the London Metal Exchange (LME)

rose 0.2% to $9,589 a metric ton by 0957 GMT. It has dropped 14%

since speculative buying took prices to a record high of

$11,104.5 on May 20.

"Several base metals are rising today, with modest growth in

copper and more significant growth in zinc because people are

trying to pick up a bit of the bottom. Most of the algos based

on our models have a buy signal now after recent sell-off," said

Dan Smith, head of research at Amalgamated Metal Trading.

He was referring to algorithmic computer programmes which

often make trading decisions based on technical factors such as

momentum.

There are, however, signals of current weak physical demand

in China.

"Copper rod or wire rod producers in China has increased

production a little bit in June from April-May levels, but this

growth has not been significant. It means that demand has not

picked up much yet despite copper prices falling from recent

highs," Smith added.

Copper stockpiles in the LME-registered warehouses

kept on rising with the daily LME data showing

2,700 tons of arrivals which boosted the stocks to 175,475

tonnes, the strongest in more than six months.

The discount for LME cash copper over the three-month

contract was at a record high of $148.4.

However, tight copper mine supply may provide an upside to

the metal, used in power and construction, in the second half of

the year, BofA Securities said in a note.

LME zinc rose 1.4% to $2,911, nickel added

0.4% to $17,230 while aluminium was down 0.1% at $2,494,

lead fell 0.7% to $2,195 and tin lost 0.7% to

$32,035.