UPDATE 2-Britain's FTSE snaps 4-week winning streak
(Recasts, updates prices, adds new quotes)
* FTSE 100 down 0.5 percent
* Index closes week below 6,600, stuck in a tight range
* BSkyB, Rolls Royce among the biggest top fallers
* Pearson surges after reiterating full year guidance
By Alistair Smout
LONDON, July 26 (Reuters) - Britain's FTSE 100 took its first weekly fall in more than a month, faltering at resistance levels and led lower by weakness in BSkyB and Rolls Royce on Friday.
The FTSE 100 closed down 33.16 points, or 0.5 percent, at 6,554.79 points, failing to hold above recent resistance around seven-week highs just above 6,600 and still 4.7 percent off 13-year highs made in May.
"We will make new highs, but not necessarily any time soon. We've had a really good bounce back so some kind of consolidation makes perfect sense," Alan Higgins, UK chief investment officer for Coutts, which manages 30.8 billion pounds ($46.9 billion) worth of assets, said.
"However, with decent yields and relatively low multiples, the UK remains one of the more attractive markets."
The index snapped a four-week winning streak, retracing last week's gains but falling no further. The index has traded in a narrow 145-point range for the last fortnight.
Among the top fallers was BSkyB, down 3.3 percent, after the broadcaster announced a share buy-back size at the lower end of expectations. It forecast the consumer environment will remain challenging and announced new investments which could dent next year's profit.
Rolls Royce fell 3.2 percent to retrace most of Thursday's post-earnings surge. While the company announced a 34 percent rise in profit, analysts at Deutsche Bank saw the company's cost control as disappointing, and downgraded the stock to "sell" from "hold".
The falls came despite general optimism about the earnings season. Pearson gained 6.1 percent after confirming its full-year outlook.
Of the FTSE 100 companies who had reported second quarter earnings by Thursday's close, 60 percent beat or met expectations, compared to 50 percent of their euro zone peers in the EuroSTOXX 50, according to Thomson Reuters StarMine.
"Decent earnings have been factored in to a certain degree, and the FTSE 100 is finding little in the way of momentum to the upside," Manoj Ladwa, head of trading at TJM Partners, said.
"We've had a good run, bouncing from 6,000 to 6,600, and it's running out of steam now. I can't see a huge amount of upside from equities in the near term." (Additional reporting by Toni Vorobyova; Editing by Ruth Pitchford)
- Flights delayed as air pollution hits record in Shanghai
- White House reverses, says Obama met uncle and lived with him during law school
- South Africa mourns Mandela, will bury him on December 15 |
- French launch Central African Republic mission but deaths mount
- Supreme Court to decide on patent protections for software