(Refiles to correct spelling in second paragraph)
* FTSE 100 index flat; commodity issues rally
* Banks weak on European debt uncertainties
* Ex-dividends weigh led by M&S, Vodafone
By Jon Hopkins
LONDON, Nov 17 (Reuters) - Britain's leading share index was
flat at noon on Wednesday, with weakness in banking issues on
Europe's debt problems, and ex-dividemd factors offsetting a
modest rally by commodity issues.
By 1159 GMT, the FTSE 100 <> was 2.13 points, or 0.1
percent, lower at 5,679.77, licking its wounds after notching up
its biggest daily fall since August 11 on Tuesday.
"There are few people who had not expected some form of
correction after the rapid rise following the Fed's announcement
of QE2," said Phil Gillett, a trader at Spreadex.
"What seems different this time is the market's lack of
desire to drive north on this drop. Having broken (down) through
the 5,700 level, the market looks now to be at a turning point
and the risk remains to the downside."
Banks were under pressure <.FTNMX8350> as investors
continued to fret over their exposure to Europe's debt troubles.
Global heavyweight HSBC <HSBA.L> was the worst off, down 0.8
percent, with the stock trading ex-dividend on Wednesday.
Market heavyweight Vodafone <VOD.L> was the biggest drag on
the blue chips, down 2.2 percent also after losing its payout
attractions, and as Evolution Securities cut its rating for the
mobile telecoms firm to "reduce" after recent results.
"Despite slightly better than expected results, we see some
potentially large macroeconomic stumbling blocks and still too
little evidence that Vodafone is sufficiently differentiated
from peers to deserve a premium rating," the broker said.
Marks & Spencer <MKS.L>, J Sainsbury <SBRY.L>, Barclays
<BARC.L> and Carnival <CCL.L> also traded ex-dividend.
The number of Britons claiming unemployment benefit fell
unexpectedly last month and a wider measure of unemployment also
fell in the three months to September, official data showed on
Wednesday. []
Meanwhile, Bank of England policymakers split three ways for
a second month running in November, with one member wanting more
stimulus, another voting for a rate hike, and other seven
freezing policy and ready to act in either direction.
[]
COMMODS RALLY
Mining <.FTNMX1770> and energy <.FTNMX0530> stocks ticked
higher, recovering support after recent falls made on the back
of fears of interest rate hikes in China, the world's largest
commodities consumer. []
Xstrata <XTA.L> was the best-performing miner, up 1.1
percent, while energy firm BG Group <BG.L> gained 0.5 percent.
Drugmaker GlaxoSmithKline <GSK.L> provided the most
underlying strength for the FTSE 100 index, gained 2.1 percent
following backing from a U.S. advisory panel for its lupus drug
Benlysta, which is seen as a potential blockbuster.
[]
Credit information group Experian <EXPN.L> was the top
blue-chip performer, up 6.5 percent after hiking its interim
dividend and saying it continued to look at ways of returning
cash to shareholders after a stronger-than-expected first half.
[]
Inter-dealer broker Icap <IAP.L> gained 2 percent after
saying it had shrugged off "generally quieter markets" in the
six months to end-September to report revenue up 9 percent at
867 million pounds. []
(Editing by Dan Lalor)
