* FTSEurofirst 300 index down 0.6 pct
* Oils slide as crude falls
* Drugmakers down; Elan slumps
By Joanne Frearson
LONDON, Oct 23 (Reuters) - European shares closed lower on
Friday, dragged down by oil stocks tracking a fall in crude
prices on economic recovery concerns and the drugmaking sector.
The pan-European FTSEurofirst 300 <> index of top
shares closed down 0.6 percent at 1,008.88 points after trading
as high as 1,027.89 points earlier in the day.
The index, which fell 45 percent in 2008, is up 21 percent
this year and has gained almost 56 percent from a record low hit
in March.
"We are back to a situation where the markets have rallied
quite strongly. We have had a interesting week of both good and
bad news. I just think this is profit taking," said Howard
Wheeldon, strategist at BGC Partners.
Oil stocks reversed early gains as crude <CLc1> fell 0.6
percent after scepticism that the economic recovery was robust
enough to spur a convincing rise in fuel demand quelled the
appetite to extend this week's powerful rally.
Galp Energia <GALP.LS>, Petroplus <PPHN.VX>, Royal Dutch
Shell <RDSa.L> and Total <TOTF.PA> were down 0.4 to 1.6 percent.
Drugmakers featured among the worst performers. Elan <ELN.I>
slumped 20 percent after European regulators said they have
begun a review of the multiple sclerosis drug Tysabri following
reports of 23 cases of a potentially deadly brain infection.
[]
GlaxoSmithKline <GSK.L>, Roche <ROG.VX> and Merck <MRCG.DE>
were down 0.6 to 1.1 percent.
MINERS, BANKS GAIN
On the upside, miners were the top performers tracking metal
prices higher, with copper <MCU3=LX> up 0.5 percent.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Eurasian Natural Resources Corporation <ENRC.L>, Rio
Tinto <RIO.L> and Xstrata <XTA.L> gained 1.5 to 4.2 percent.
Banks were in demand. HSBC <HSBA.L>, BNP Paribas <BNPP.PA>,
Standard Chartered <STAN.L> and Societe Generale <SOGN.PA> were
1.2 to 2.2 percent higher.
Some analysts have noted that in the past two weeks, barring
one exception, the index has followed a pattern by rising one
day and falling in the next. They said the behaviour showed that
investors were cautious in trading.
"That's a clear sign that the positive momentum is losing
steam and there is a real risk of a pull back, especially after
a rally of 60 percent," said Koen De Leus, economist at KBC
Securities.
"Getting into the market now looks to me pretty risky. If
you go into the market now, see that you have something to fall
back on, like stop-loss orders. See that you have your parachute
ready," he added.
Across Europe, the FTSE 100 <> index was up 0.7
percent, Germany's DAX <> was down 0.4 percent and
France's CAC 40 <> was 0.3 percent lower.
(Additional reporting by Atul Prakash; Editing by Jon
Loades-Carter)
