* FTSE falls 1.1 percent to 6,685.70
* M&S, AMEC fall after going ex-dividend
* Miners, banks biggest sector losers
By David Brett
LONDON, May 29 British blue chip shares fell on
Wednesday as investors took the previous session's sharp rise as
a reason to take profits and retailer Mark & Spencer and
engineering group AMEC dropped after losing their
By 0738 GMT, the FTSE 100 was down 76.31 points, or
1.1 percent, at 6,685.70, having gained 1.6 percent on Tuesday
to near 13-year highs on pledges of continued monetary stimulus
from major central banks.
"Profit takers may move in as the end of the month
approaches," Jawaid Afsar, sales trader at SecurEquity said, but
noted that trade in the final few days of the month was likely
to be volatile.
While officials from the Bank of Japan and the European
Central Bank have reiterated that they will keep policies
designed to foster growth in place, strong U.S. economic data on
Tuesday reignited concerns that the Federal Reserve could scale
back its accommodative monetary policy earlier than expected.
The UK equity market fell sharply late last week from near
all-time highs after Fed Chairmen Ben Bernanke said a decision
to scale back its bond buying operations could come at one of
the Fed's next few meetings if the U.S. economy looked set to
"The bullish argument is straightforward and has not changed
a great deal after last week's wobble: monetary stimulus is far
from finished and will continue to underpin the attractions of
equities relative to other asset classes," Ian Williams, equity
strategist at Peel Hunt, said.
Early on Wednesday, however, with no major UK company news
or economic data for investors to mull over, the FTSE 100 index
was a sea of red.
Those sectors most acutely exposed to the state of the
broader economy were the biggest fallers with miners
and industrial metals falling 1
percent and 4.1 percent, respectively, while banks
shed 0.9 percent.
Marks and Spencer and AMEC took a combined 0.97 points off
the FTSE 100 after trading without the entitlement to their
latest dividend payout.
(Editing by Susan Fenton)