(Corrects date for coverage resuming)
* FTSE down 1.2 percent on day, up 9 percent in 2010
* Banks, miners fall, extend recent weakness
* Index gains 6.7 percent in December
By Simon Falush
LONDON, Dec 31 (Reuters) - Weaker commodity stocks and banks
dragged Britain's top shares lower in thin volumes on the last
day of 2010, but the index ended December and the year in firmly
positive territory.
The FTSE 100 <> closed 71.07 points or 1.2 percent
lower at 5,899.94 on Friday, after a third day of losses as
investors locked in profits made so far this year. The index had
scraped above 6,000 just before the Christmas break.
The index closed provisionally 0.7 percent lower, but fell
further after some aggressive selling in the auction period
prior to the official close.
The index gained 6.7 percent in December and 9 percent in
2010. It was down 0.9 percent on the week after four consecutive
weeks of gains, but has gained 23.2 percent since touching a low
for the year at the start of July.
Daily trading volume was under 25 percent of the 90-day
moving average.
Miners <.FTNMX1770> were the biggest drag on the index,
giving up some of the chunky gains made in 2010. They still
managed to close the year almost 28 percent higher after a 108
percent gain in 2009, bolstered by record high metal prices.
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Britain's stock markets will be closed on Monday Jan. 3 for a
public holiday. Coverage will resume on Tuesday, Jan. 4
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TIGHTER POLICY
The sector has been hampered on lingering concern about
implications of tighter monetary policy in China after the
world's most populous country raised interest rates on Christmas
day.
"News that China raised rates has prompted a feeling from
some that a correction that was likely to be seen at some point
next year may come earlier than expected," said Giles Watts,
head of equities at City Index.
"There's a realisation that the gains may have been a bit
frothy and some may be looking to take profits ahead of the
curve."
Some miners like Rio Tinto <RIO.L> were also hurt by
flooding affecting operations in Australia. Rio Tinto lost 2.1
percent.
UK macroeconomic data further underlined the choppy nature
of Britain's recovery as house prices rose in December for the
first time since May. Numerous previous indicators had shown
house prices falling.
Banks <.FTNMX8350>, which have been hindered by worries over
euro zone debt exposure in 2010, were lower with Barclays
<BARC.L> off 1 percent.
Energy companies were lower as crude <CLc1> fell below $90 a
barrel. Oil major BP <BP.L> fell 1.2 percent.
Oil was set to close the year up more than 12 percent and
averaged nearly $80 a barrel -- the second highest on record --
driven by a resurgence in global demand, a harsh winter in the
northern hemisphere and falling inventories.
The energy sector <.FTNMX0530> has gained 0.6 percent this
year, underperforming largely due to a sharp fall in BP after
the major oil spill in the Gulf of Mexico.
(Editing by David Holmes)
