* FTSE down 0.3 percent, geopolitical concerns linger
* Banks lower as HSBC results disappoint
* Retailers knocked on Primark worries
By David Brett
LONDON, Feb 28 (Reuters) - Britain's FTSE 100 <> share
index fell on Monday as disappointing results from HSBC <HSBA.L>
and Associated British Foods <ABF.L> and geopolitical concerns
knocked investor sentiment.
By 1140 GMT, the FTSE 100 was down 19.34 points, or 0.3
percent, at 5,981.86, after it closed 1.4 percent higher on
Friday at 6,001.20, bouncing back after five straight days of
declines.
Banks were the biggest drag on London's blue chip index,
with heavyweight HSBC down 4.5 percent after its earnings missed
estimates. []
Lloyds Banking Group <LLOY.L>, whose margin outlook
disappointed the market on Friday, fell 0.9 percent, as brokers
responded by cutting ratings and target prices for the majority
state-owned UK bank.
Political troubles hampered broader market sentiment, as
protests in Oman fuelled concerns about oil supplies from the
Middle East after uprisings in Libya dramatically reduced
exports from North Africa.
"The Middle East situation has reminded investors of the
risks that remain in the developing world," Colin Lunnon, fund
manager at Octopus Investments, said.
"We have been content to direct recent new money inflows to
cash for the time being until a clearer picture presents itself
and some tangible trends begin to emerge."
MINER CONCERNS
Miners <.FTNMX1770> remain under pressure as oil prices
<CLc1> threaten the global economic recovery.
Chinese Premier Wen Jiabao said over the weekend that
fighting inflation was a priority for China even as the official
GDP target for the 2011-2015 growth plan is 7 percent per year,
down from the 11.2 percent a year growth China averaged in the
last five-year period. []
Bucking the overall trend Essar Energy <ESSR.L> rose 3.8
percent as Credit Suisse initiated coverage of the
Indian-focused oil and gas business with an "overweight" rating.
Credit Suisse says Essar has a strong growth outlook,
offering investors an attractive play on the Indian power
market.
But a slowdown at discount fashion retailer Primark's
British stores hit the shares of owner Associated British Foods
Plc <ABF.L>. []
AB Foods fell 5.5 percent as it said tax rises and inflation
squeezed consumer spending in the first two months of this year.
The results dented confidence in the retail sector, with Wm
Morrison Supermarkets <MRW.L> down 2 percent and Next off 2.3
percent.
"With more gloomy news from Primark today on High Street
trading, we remain cautious in the short term about the general
retail sector," Nick Bubb, analyst at Arden Partners said.
Elsewhere, Pearson <PSON.L> added 1.7 percent as the
publisher reported "robust" full-year results, leading Numis
Securities to raise its target price. []
UK real estate firms Hammerson <HMSO.L>, British Land
<BLND.L> and Land Securities <LAND.L> rose 2.2 to 2.2 percent.
Traders cited bullish views on land values and an upsurge in
residential developments in London and other parts of the UK,
after an article in the Financial Times.
(Editing by Greg Mahlich)
