* FTSE down 0.5 percent
* Miners down, China lifts reserve requirements
* Defensives on the up, traders see early 2011 rotation
By David Brett
LONDON, Feb 18 (Reuters) - Britain's top shares fell from
recent highs on Friday, as further monetary tightening in China
and political unrest in the Middle East and North Africa
prompted a flight from risk by investors.
By 1158 GMT, the FTSE 100 <> was 28.98 points, or 0.5
percent lower, at 6,058.40. It closed on Thursday near levels
not seen since June 2008 and is up 3.3 percent this month.
Miners fell after China's central bank raised lenders'
required reserves by 50 basis points, effective Feb. 24, the
second time it has done so this year. []
Rio Tinto <RIO.L> and Xstrata <XTA.L> shed 2.2 and 1.4
percent respectively.
"We've already seen, as a result of the signals we've had
from China, some rotation since November," a London-based
trader, said.
"It's carried on this year, rotation out of some emerging
market growth stories and into more defensive, cheaper,
developed market sectors."
The biggest faller was Anglo American <AAL.L>, down 2.4
percent, with traders citing disappointment over its dividend
and the outcome of the attempted sale of its unwanted Tarmac UK
building materials business. []
PRECIOUS GAINS
Gold and silver, however, seen as safe havens in troubled
times, rose to five-week and 31-year highs respectively, and
Brent crude oil rose towards $103 a barrel, on increased fears
of political tension spreading across the Middle East.
[]
"I'm surprised the reaction hasn't been more exaggerated,
bearing in mind the fluctuations we saw during the unrest in
Egypt," Jimmy Yates, head of Equities at CMC Markets, said.
Precious metals miner African Barrick Gold <ABGL.L> rose 4.7
percent with traders citing vague bid talk.
Banks <.FTNMX8350> were becalmed after enjoying a strong
start to 2011, and up over 2 percent on the week, after solid
results in the sector.
The world's top central bankers will take centre stage on
Friday, ahead of a G20 meeting which appears set to struggle to
make headway on an ambitious French agenda.
There was a more positive indicator for the UK economy with
retail sales rebounding sharply in January. Europe's biggest
home improvements retailer Kingfisher <KGF.L> climbed 1.6
percent. []
BAE Systems <BAES.L> shed 1.7 percent as brokers cut their
target prices after Thursday's results.
On the second line, Rentokil Initial <RTO.L> and Charter
International <CHTR.L> each shed 6.7 percent after their
respective results. [] []
Stocks seen as defensive were among the top risers as
investors rotated out of riskier assets and into sectors such as
utilities and tobacco.
Severn Trent <SVT.L> rose 0.8 percent, helped by a target
price increase from Goldman Sachs.
British American Tobacco <BATS.L> and Imperial Tobacco
<IMT.L> rose 0.6 percent and 1.6 percent respectively.
Mid cap transport group Go-Ahead <GOG.L> gained 4.6 percent
after its bullish update imbued investors with confidence.
Imagination Technologies Group <IMG.L> rise 7.7 percent as
JP Morgan lifted its target price, expecting further contract
wins for the firm's high-end graphics processor.
(Editing by david Hulmes)
