* FTSE 100 up 0.3 percent
* Vodafone, BT Group up on broker note, commodities weaker
* Old Mutual lifted on rise in profits, Randgold retreats
* Technicals paint bearish picture
By Simon Falush
LONDON, March 8 (Reuters) - Britain's top share index held
its ground on Tuesday as falling crude prices tempered anxiety
on the outlook for global growth, while political turmoil across
the Arab world kept investors cautious.
Vodafone <VOD.L> and BT Group <BT.L> were strong gainers, up
2.2 percent and 2.5 percent respectively amid high volumes, with
traders saying they got a boost from a note on the telecoms
sector from Morgan Stanley in which they were upgraded.
The FTSE 100 <> was up 2.97 points, or 0.05 percent, at
5,976.75 by 1135 GMT, after falling 0.3 percent on Monday.
Kuwait's oil minister said OPEC was in talks about boosting
production for the first time in more than two years, pushing
Brent crude futures <LCOc1> lower. []
However, with Brent still up 21 percent this year, investors
remained worried that soaring energy prices could derail a
fragile domestic and global recovery.
"A high oil price ain't good. Four of the last five oil
spikes have resulted in recession," said Charles Morris, manager
of the $2.5 billion HSBC Absolute Return fund.
"Cyclically, the market looks expensive and it is hard to
see how it will grind out returns from here at these prices."
The FTSE 100 is still over 100 points below its 2011 peak
set last month, and the situation in Libya continued to be
watched closely by investors.
Rebels fighting to overthrow Muammar Gaddafi have rejected
an offer from the Libyan leader to negotiate his exit even as
they battled to hang on to early gains in the insurrection.
Geopolitical storm clouds dampened sentiment on metal
prices, pushing miners <.FTNMX1770> lower.
RANDGOLD RETREAT
Randgold Resources <RRS.L> was the heaviest faller, sliding
6.3 percent, with traders saying trouble in Ivory Coast where it
has operations, were hurting it.
Insurer Old Mutual gained 1.6 percent after narrowly beating
expectations with a 14 percent increase in profit and saying it
was sticking by a three-year strategy aimed at simplifying its
structure. []
HSBC <HSBA.L> gained 1.6 percent. Traders said reports the
bank may be mulling a move to Hong Kong were positive for the
stock as such a development would lead to lower costs.
Underlining the parlous state of the domestic economy,
British retail sales fell last month, house prices continued to
drop, and companies only expect to hire a small number of extra
staff, three surveys released overnight found. []
Technical indicators also paint a fairly gloomy picture,
analysts said.
"The ... 1,440-minute chart suggests that further downside
activity is likely especially if the January 31 bottom at
5,815.44 fails to hold as support," said Enis Mehmet, Analyst at
Autochartist. "If this occurs, then look for an acceleration to
the downside with 5,812.48 to 5,743.26 the next likely target
zone."
(Editing by Dan Lalor)
