* FTSE 100 down 0.9 pct
* Banks drop; investors wait for clarity on Irish debt
* Commodities anchored as China raises reserve requirement
By Simon Falush
LONDON, Nov 19 (Reuters) - Banks led Britain's top share
index lower on Friday, as lingering uncertainty on Ireland's
debt dented the sector and China increased its reserve
requirements, pressuring commodity stocks.
By 1146 GMT, the FTSE 100 <> was down 49.47 points, or
0.9 percent, at 5,719.24, having closed 1.3 percent higher on
Thursday. The index is down 1.4 percent for the week, on track
for its worst such performance since late August.
Banks <.FTNMX8350> fell after Thursday's advance as
investors retreated until a definitive solution is found to
Ireland's problems.
A European Union and International Monetary Fund aid plan
for Ireland is likely to come next week together with, or very
shortly after, the release of Dublin's four-year austerity
scheme, EU sources said on Friday. []
China said on Friday it would raise banks' reserve
requirements by 50 basis points, effective Nov. 29, the second
time in two weeks.
"There was a weaker tone given what's going on in Ireland,
and the (raised reserve requirement) will be the first in a
range of steps the Chinese authorities will take over the next
few weeks and months," said Michael Hewson, markets analyst at
CMC Markets said.
Lloyds Banking Group <LLOY.L> fell 2.1 percent and HSBC
<HSBA.L> was 1.8 percent lower.
"There's the prospect of some additional action in Ireland
over the weekend, so I'm expecting a reasonably quiet day, with
investors continuing to keep their risk positions pretty
limited," Peter Dixon, economist at Commerzbank, said.
MINERS IN A HOLE
Mining stocks <.FTNMX1770>, fell on worries that China might
adopt more stringent measures to add to the increased reserve
requirements in order to keep inflation in check, including a
drastic rise in interest rates.
Outsourcer Capita <CPI.L> extended its decline from Thursday
when it issued a trading update. It was down 3.5 percent, the
heaviest faller among blue-chips, after an HSBC downgrade to
"underweight".
On the upside, software firm Autonomy <AUTN.L> added 2.3
percent, with traders citing its analyst day on Nov. 29 as a
potential catalyst and with sentiment surrounding the technology
sector lifted by earnings-busting results from U.S. computer
maker Dell <DELL.O>.
Cairn Energy <CNE.L> added 0.1 percent after India-focused
mining group Vedanta Resources <VED.L>, down 1 percent, agreed a
$6 billion financing deal with a consortium of banks to help
fund its proposed acquisition of a majority stake in the Indian
unit of Cairn Energy.
The next significant support for the index is at 5,682, a
50-day moving average which the index bounced off on Wednesday,
Hewson at CMC Markets said.
(Additional reporting by Tricia Wright; editing by David
Hulmes)
