* FTSE down 0.4 percent
* Ex-dividend factors knock 19.83 points off index
* Financials rise, Singer upbeat for 2011
LONDON, Feb 9 (Reuters) - Heavyweight stocks trading
ex-dividend weighed on Britain's top share index on Wednesday,
outpacing strength among financials.
At 1133 GMT, the FTSE 100 <> index was down 21.38
points, or 0.4 percent, at 6,069.95, having gained 0.7 percent
on Tuesday to close at its best level since May 2008.
Companies trading ex-dividend accounted for 19.83 points of
the fall, with BP <BP.L>, GlaxoSmithKline <GSK.L>, International
Power <IPR.L>, Royal Dutch Shell <RDSa.L>, Sage Group <SGE.L>
and Unilever <ULVR.L> all losing their payout attractions.
International Power gained 2.5 percent following an
adjustment in the stock as it traded ex-special dividend.
Investec adjusted its target price for the utility to 416
pence, down from 538 pence, and repeated its "buy" rating.
"This gives 26 percent upside from an ex-special dividend
share price of 329 pence and we believe that, at this level, the
forecast 2011 P/E and EV/EBITDA progression is attractive,
reflecting the 'baked-in' growth from existing projects," the
broker said.
"After Tuesday's leap to multi-year highs, a bit of a
hangover today is inevitable, though without the ex-dividend
factors the FTSE would be higher," said Ben Barty-King, head of
Options trading at ETX Capital.
Household products giant Reckitt Benckiser <RB.L> fell 6.2
percent after missing fourth-quarter forecasts. []
Miners ebbed after a rally late on Tuesday, with Kazakhmys
<KAZ.L> down 1.9 percent. Falls in metal prices in Asia in
response to China's interest rate hike put the sector into
reverse.
On the economic data front, Britain's goods trade deficit
hit a record high in December, weighing on confidence.
[]
Wall Street futures pointed to a lower open in the United
States, after a strong run that has taken share prices to their
highest levels in more than 2-1/2 years.
FINANCIALS SUPPORT
Banks <.FTNMX8350> and insurers were the main support for
the FTSE 100 as analysts remained upbeat on equities, and in
particular riskier assets, for 2011.
"2011 will produce double digit returns for equities as
concerns over the banking sector abate and growth remains
positive for larger Western economies, albeit at a modest level,
with central banks remaining supportive." analysts at Singer
Capital Markets said in a note.
"These conditions should further encourage both retail
and institutional flows into equities. Low interest rates will
galvanise investor appetite for riskier assets which will
benefit asset managers in general."
Prudential <PRU.L> gained 2 percent as Societe Generale
upgraded the life insurer to "buy" from "hold" and replaces
Aviva <AV.L>, down 1.3 percent, as the broker's preferred stock
in the sector.
On the second line, London Stock Exchange <LSE.L> rose 9.3
percent after saying it was buying the Toronto Stock Exchange
<X.TO>. []
CSR <CSR.L> added 8.4 percent after the chipmaker reported
forecast beating fourth quarter revenues. []
Back among the blue chips, aerospace and defence companies
were higher, helped by a note from Nomura which said it expected
commercial aerospace stocks to perform well against the backdrop
of an improving cycle.
Rolls Royce <RR.L> and BAE Systems <BAES.L> were up 0.5
percent and 1.3 percent respectively, while GKN <GKN.L> extended
the previous session's gains, up 2 percent.
(Editing by Dan Lalor)
