* FTSE 100 down 15.6 points at 6,572.83
* Aggreko knocked by Deutsche's dim earnings view
* Morrison rises as outlook catches shorts on the hop
* AMEC up as it calls off bid for Kentz
By David Brett
LONDON, Sept 12 Britain's top share index ran
out of steam again as it approached resistance around the 6,600
level with temporary power provider Aggreko leading the retreat
on earnings worries.
Aggreko fell 3.1 percent with traders citing a note
from Deutsche Bank as the catalyst. The investment bank cut its
target price on the company by 11 percent to 1,870 pence and
gave a cautious outlook for earnings.
Aggreko, which released two profit warnings late last year,
is currently the third most shorted stock on the FTSE 100 with
near 25 percent of the stock available for loan being utilised
by investors betting the stock will fall, data from Markit
The FTSE 100 was down 15.60 points or 0.2 percent at
6,572.83, with only the defensive healthcare sector in positive
territory. The index suffered a broad-based retreat after
failing again to breach 6,600 - a level it has closed above just
once since early August.
Steve Ruffley, chief market strategist at InterTrader, said
the FTSE 100 was seeing technical resistance at 6,569.65 and
higher at 6,616 but with firm support not far away the index was
likely to keep in a tight range.
"We have support at 6,479 and 6,434. With the speculation of
Federal Reserve stimulus easing on the cards there may be some
dip-buying opportunities," he said.
Britain's fourth biggest grocer by revenue Wm Morrison
Supermarkets rallied 2.9 percent to top the list of
gainers with traders citing dividend, outlook, and valuation
attractions as a trigger for short covering after the firm's
Wm Morrison is the 10th most shorted stock on London's blue
chip FTSE 100, according to data from Markit, while 22 out of 25
analysts covering the stock rating it as either a "hold" or
AMEC, meanwhile, climbed 2.2 percent after the
British engineer said it will not make an offer for oil and gas
construction firm Kentz, as it continues to try to
expand in Australia, Africa and the Middle East.
(Editing by Jeremy Gaunt)