* FTSE falls, pausing after Friday's 2009 highs
* Banks lower; Lloyds rights issue rumours sour sector
* Miners hit hardest as profit takers move in
* Energy stocks under pressure as crude slips below $71
By Tricia Wright
LONDON, Aug 10 (Reuters) - Britain's top share index was
lower in midday trade on Monday as investors booked profits as
the earnings season tailed off, with heavyweight miners, banks
and oils the biggest drags on the blue chips.
At 1042 GMT, the FTSE 100 <> was down 27.11 points. or
0.6 percent, at 4,704.45, after hitting a 10-month closing high
on Friday, up 0.9 percent, or 41.03 points, at 4,731.56,
following upbeat employment data in the U.S.
"In terms of the corporate side, what we're seeing is a bit
of a wind down now from the second-quarter earnings we've been
seeing in the UK," said Richard Hunter, head of UK equities at
Hargreaves Lansdown.
"Although it's been pretty good on the whole, obviously it
now leaves a bit of a gap in terms of where the market looks for
the next direction," he said.
Miners were the biggest drag on the FTSE 100 index, falling
back after a recent rally, with Anglo American <AAL.L>,
Fresnillo <FRES.L>, BHP Billiton <BLT.L> and Antofagasta
<ANTO.L> off 1.2-2.3 percent.
Rio Tinto <RIO.L> dropped 1.7 percent after China stepped up
espionage allegations against the world's second-largest iron
ore miner. []
Xstrata <XTA.L> fell 2.5 percent after the company said on
Sunday it was in talks that could lead to it selling a major
stake in a South African mining project. []
Energy stocks were weaker as crude prices <CLc1> dipped
below $71 a barrel, losing momentum after last week's rally as
traders focused on swollen inventories and prospects for a
stronger dollar.
BG Group <BG.L>, Royal Dutch Shell <RDSa.L> and Cairn Energy
<CNE.L> fell 0.4-0.7 percent.
Banks were under pressure as sector sentiment took a dive
following a report in the Sunday Times about a possible share
issue by Lloyds Banking Group <LLOY.L>, which fell 4.1 percent.
Royal Bank of Scotland <RBS.L>, was the biggest blue-chip
faller, down 4.9 percent after its glum results on Friday, with
Barclays <BARC.L> and Standard Chartered <STAN.L> off 0.8
percent and 0.3 percent, respectively.
INSURERS IN DEMAND
Life insurers were in demand, with Friends Provident topping
the FTSE 100 leaderboard, up 7.1 percent, after the firm said on
Monday it had agreed to fresh talks with suitor Resolution
<RSL.L>. Investors were hoping that an agreed offer could land
with Friends Provident's interims on Tuesday. []
Peer Prudential <PRU.L> climbed 2.2 percent, helped by
weekend newspaper reports that the company is set to buck the
sector trend and raise its dividend with its results on
Thursday. []
Old Mutual <OML.L> rose 1.3 percent, while Standard Life
<SL.L> added 0.3 percent.
Rexam <REX.L> rose 2.3 percent as Credit Suisse raised its
recommendation to "outperform" from "neutral" and lifted its
target price to 300 pence from 278 pence.
And BT Group <BT.L> added 1.9 percent as JP Morgan raised
its rating for the fixed line telecoms group to "overweight"
from "neutral".
(Editing by Gilbert Kreijger)
