* FTSE 100 closes down 0.1 pct at 6,280.62 points
* Engineering stocks fall as Caterpillar cuts forecast
* Randgold rises as Blackrock increases stake in firm
* Logic Investments backs "shorting" into strength
By Sudip Kar-Gupta
LONDON, April 22 Britain's benchmark equity
index closed lower on Monday, erasing initial gains after U.S.
construction equipment group Caterpillar cut its
forecast, hitting British engineering stocks.
Traders said the outlook over the next month looked negative
for the blue-chip FTSE 100 index, due partly to bearish
technical signs and an uncertain global economic outlook.
The FTSE 100 ended down 0.1 percent, or 5.97 points lower,
at 6,280.62 points.
The FTSE is up 6.5 percent since the start of 2013 but has
fallen around 4 percent from a 2013 intraday peak of 6,533.99
points in mid-March.
The index has also fallen on 9 sessions since the start of
April and risen on 6, which traders said pointed to an overall
"Technically, it's not looking too great at the moment. The
price action doesn't look too healthy since any rallies are not
being sustained and are very short-lived," said EGR Broking
managing director Kyri Kangellaris.
Kangellaris said the FTSE could fall back down to 6,000
points "fairly quickly" if any further declines pushed it below
Engineering and construction stocks such as AMEC,
Melrose and Weir featured prominently on the
FTSE's loserboard after Caterpillar cut its 2013 profit
However, gold miner Randgold Resources outperformed
to rise 4.4 percent to the top of the FTSE 100, helped by
investment company Blackrock's decision to raise its stake in
Randgold to 14.1 percent from around 14 percent before.
"The Blackrock news has given it a shot in the arm," said
Securequity sales trader Jawaid Afsar.
Darren Easton, director of trading at Logic Investments,
said he saw the FTSE 100 trading within a tight range from
roughly 6,210-6,380 points in the coming sessions.
He added he would rather sell - go short - on any rallies in
the market, rather than go long by buying the market on days
when it dipped.
"Our general preference is to 'short' into strength, rather
than go 'long' into weakness," he said.
Miton fund manager George Godber favoured stocks with
positive cash-flow. He added that he did not have any banks,
miners or utility stocks in his portfolio but backed stocks such
as retailer Sainsbury and housebuilders Barratt
Developments and Berkeley Group.
"We know there's money coming out of bonds and into
equities, but you've got to be selective with your
stock-picking," said Godber, who manages the CF Miton UK Value
(Editing by Ruth Pitchford)