(Repeats to additional subscribers)
* FTSE 100 index falls 0.1 percent
* Johnson Matthey slips after earnings
* Cyclical shares up; banks, insurers advance
By Atul Prakash
LONDON, Nov 21 Britain's top share index edged
lower on Wednesday after gains in the previous two sessions,
with sentiment hurt by a lack of agreement among Greece's
international lenders on emergency aid.
Overnight, euro zone finance ministers, the International
Monetary Fund and the European Central Bank failed to reach a
consensus, without which the aid cannot be disbursed to Athens.
They will meet again next week.
However, losses were capped by a rise in cyclical sectors
such as banks and insurers on expectations that U.S. lawmakers
would ultimately reach to an agreement to avoid a fiscal crisis.
By 0956 GMT, the FTSE 100 index was down 0.1 percent
at 5,740.71 points, after rising 0.2 percent in the previous
session and surging 2.4 percent on Monday on expectations that
the U.S. "fiscal cliff" - a combination of spending cuts and tax
rises set to take effect next year - could be avoided.
"Certainly the broader concerns for Greece do look to be
overshadowing the market. On a corporate results basis also, we
haven't seen anything that has provided a great deal of
inspiration," Keith Bowman, equity analyst at Hargreaves
"But there is optimism that the 'fiscal cliff' issue will be
resolved. People are balancing their portfolios between broadly
defensive areas and some cyclical exposure to hedge their bets.
They have been dipping their toes back into the likes of banks
on a selective basis."
Sectors that generally perform better than others during a
recovery in economic activity were in demand. UK banks
were up 0.4 percent, Lloyds Banking Group
rose 0.8 percent, while Barclays was up 0.6 percent.
Insurer Aviva gained 1.1 percent.
But poor corporate news hurt shares of some companies.
Johnson Matthey, the world's largest supplier of
catalytic converters, fell 6.4 percent to top the losers' list
after posting a 6 percent dip in first-half profit and warning
of a tougher second half for its truck segment.
UK miners fell 0.9 percent, tracking weaker
Charts showed the FTSE 100 index was getting some support at
its 200-day moving average of 5,726 points, but would face stiff
resistance at 5,770, its 100-day moving average.
Mike van Dulken, head of research at Accendo Markets, said
the FTSE index had potential to rise up to 5,900 points by the
end of the year.
"The main near-term driver could be a solution for Greece
and some more positive macroeconomic data from China," he said.
On the positive side, British Land rose 2.3
percent, with traders citing an upgrade to "overweight" from
"equal weight" by Morgan Stanley.
(Editing by Stephen Nisbet)