* FTSE 100 down 0.5 percent
* Miners wane after gains, BHP faces Potash opposition
By David Brett
LONDON, Oct 22 (Reuters) - Britain's top shares were weaker
on Friday, weighed by miners with investors banking recent
strong gains on a quiet day for the market, as the index
retreated from the previous session's six-month closing high.
By 1035 GMT, the FTSE 100 <> was off 30.06 points, or
0.5 percent, at 5,727.80, after ending up 28.93 points, or 0.5
percent, on Thursday at 5,757.86.
"The 20-day moving average currently around 5,661 acts as a
trailing stop and still maintains a bullish bias," said Nicolas
Suiffet, an analyst at Trading Central.
"Next resistances are set at 5,770 and 5,835 (April's high).
Only a downside breakout of the key 20-day moving average would
dampen the bullish sentiment and would trigger a trend
reversal."
With gains on the FTSE of around 10 percent since the start
of September and no significant economic or corporate data due
out in Britain or the United States on Friday, investors locked
in profit on stocks that have driven the recent rally.
Miners <.FTNMX1770> took the biggest bite out of the index.
The sector had gained 3.5 percent since the close on Tuesday,
when it was hurt by the interest rate rise in China.
BHP Billiton <BLT.L> fell 1.0 percent. The Canadian province
of Saskatchewan, home to Potash Corp <POT.TO>, said it opposed
BHP's $39 billion bid to buy the fertilizer supplier, setting
the stage for a politically charged final decision by the
country's federal government. []
Saskatchewan may consider imposing a resource transfer tax
on BHP Billiton if Ottawa approves its proposed takeover of
provincial crown jewel Potash Corp, provincial Premier Brad Wall
said. []
Vedanta Resources <VED.L> and Lonmin <LMI.L> were the top
fallers among the miners, each down 2.1 percent.
Petrofac <PFC.L> dropped 1.4 percent after BofA Merrill
Lynch downgraded its recommendation on the oil services firm to
"neutral" from "buy" on valuation grounds.
U.S. stock index futures pointed to a slightly lower opening
for Wall Street on Friday, failing to provide any incentive for
investors to start buying back into the market.
SKY HIGH
BSkyB <BSY.L>, Britain's dominant pay-TV firm, added 0.5
percent after posting strong first-quarter profits along with a
better-than-expected rise in customers. []
TUI Travel <TT.L> edged up 1.8 percent, after shedding more
than 11 percent on Thursday, when it revealed its finance chief
will quit and restated its 2009 accounts as a result of what it
said was a post-merger technical glitch. []
BG Group <BG.L> rose 0.9 percent after Australia gave
environmental approval to two coal-seam gas projects worth about
$30 billion, led by BG and Santos <STO.AX>.
Micro Focus International <MCRO.L> climbed 6.3 percent,
topping the list of FTSE 250 <> risers, with traders citing
talk that the business software group could be a target for U.S.
firm IBM <IBM.N>.
"Micro Focus has some interesting skills that will very much
be of interest to IBM." said George O'Connor, an analyst at
Panmure Gordon.
Analysts will be watching the Group of 20 meeting in South
Korea on Friday and Saturday as an agreement to tackle economic
imbalances and fend off the prospect of damaging currency
devaluations looks set to evade the financial leaders there for
the talks. []
(Editing by Karen Foster)
