* Banks continue rally, boosted by bullish broker comment
* Miners weaken as copper hits 3-week low
* BAE Systems biggest faller on 2011 outlook
By Tricia Wright
LONDON, Feb 17 (Reuters) - Britain's top share index was
flat on Thursday, as an advance from banks spurred by upbeat
broker comment and hopes for good earnings from the sector was
offset by weak miners, hurt by falling copper prices.
By 1209 GMT, the FTSE 100 <> was off 2 points at
6,083.27, retreating after breaking through the 6,100 level to
hit a fresh 2011 intra-day high of 6,101.42.
Buyers came in for the banks <.FTNMX8350>, which continued
their ascent from Tuesday when Barclays <BARC.L> posted
forecast-beating results.
Royal Bank of Scotland <RBS.L> and Lloyds Banking Group
<LLOY.L>, set to unveil full-year results next week, rose 3.5
percent and 3 percent respectively.
Evolution Securities added RBS to its "core buy portfolio",
saying it is a "clear beneficiary of potentially better trading
conditions in retail and investment banking in the UK", while
Lloyds remained the broker's "Top Conviction Buy" in the
European banking sector.
Sentiment surrounding Lloyds was further lifted by comments
in a note from Nomura: "We view Lloyds as offering the highest
gearing to a recovery of traditional banking profitability in
the UK, without the dilution from capital markets operations."
"(The general mood) is still massively positive. If you look
at the U.S. markets, it's just relentless. It's fairly quiet,
but we're just seeing steady gains all the time," David Jones,
chief market strategist at IG Index, said.
"Earnings are definitely playing a part -- maybe not stellar
earnings out of UK and U.S. companies but steady growth on the
earnings side. I think also (we're) still getting a fair lift
from the (quantitative easing) action of the Fed last year."
MINERS WEIGH
Miners <.FTNMX1770> weakened as copper stumbled to
three-week lows with inflation worries and the demand-stifling
effect of prices near record highs keeping sentiment in check.
Results darkened the mood on Thursday. BAE Systems <BAES.L>
was the biggest faller down 4.8 percent, after the defence
contractor said it expected sales to fall in 2011 as the impact
of defence cuts in the UK and the U.S. begin to hit home.
Investec Securities placed its "buy" rating for the stock
under review. []
Reed Elsevier <REL.L> was also pressured after its results,
off 2.4 percent, with Investec describing its full-year numbers
as "solid", but saying there was "little in the statement to get
excited about either way". []
U.S. stock index futures <SPc1> <DJc1> <NDc1> pointed to a
flat to slightly weaker opening on Wall Street on Thursday,
ahead of U.S. inflation numbers, due at 1330 GMT.
On the second line, British telecoms group Cable & Wireless
Worldwide <CWP.L> rose 3.3 percent after saying contract wins
were keeping it on track for the year. []
Blue chip rival BT Group <BT.L> fell 0.5 percent.
In terms of domestic economic data, British factory orders
improved more than expected in February and firms expected to
put up prices at their fastest pace in 2-1/2 years, the CBI's
monthly industrial trends survey showed. []
(Editing by Mike Nesbit)
