* FTSE down 12.65 points at 6,612.74
* Tate & Lyle falls as CS cuts earnings and rating
* Goldminers dip as Fed stimulus decision wears off
* BP climbs on re-heated Exxon Mobile bid talk
By David Brett
LONDON, Sept 20 Britain's top shares edged lower
heading into the close on Friday, led down by Tate & Lyle on
short-term earnings worries and flagging after the previous
session's big rise.
Traders attributed Tate & Lyle's 2.8 percent fall
to a note from Credit Suisse cutting the sweetner-maker to
"neutral" from "outperform", citing short-term hurdles.
Credit Suisse lowered its target price to 800 pence from 930
pence, and cut its earning per share (EPS) estimates by up to 8
For the full year, Tate is expected to post EPS of 60.1
pence, with revenues estimated to be around 3.5 billion pounds
($5.6 billion), according to Thomson Reuters forecasts. Tate
trades on a forward 12-month price-to-earnings ratio of 12.7
times, compared with peers on 18 times, according to Thomson
The blue-chip FTSE 100 index was down 12.65 points, or 0.2
percent, at 6,612.74 points by 1424 GMT, in light volume, having
rallied 1 percent on Thursday after the U.S. Federal Reserve's
move to delay cuts to economic stimulus.
Steen Jakobsen, chief economist at Saxo Bank, said while
stocks would enjoy an initial pickup thanks to the Fed's delay
in winding down its liquidity scheme, the longer-term effects
would reduce the future expected return on equities.
"First equities will be higher because of lower rates for
longer, but when the liquidity drug wears off you will have the
reality of lower world growth, lower marginal pricing power and
most likely a switch back into fixed income from equity," he
Goldminers slid having risen sharply in the previous session
in tandem with gold, which is an inflation hedge in times of
easy monetary stimulus. Randgold and Fresnillo
were among the top fallers, each down around 3 percent.
Loose monetary polices across the globe have hit yields on
bonds and driven investors to seek better returns from stock
markets, with the FTSE 100 up 12 percent since the start of
However, Psigma Investment Management's Tim Gregory noted
the underlying doubt over economic recovery that underpinned the
"When the dust settles on the outcome of the Fed meeting,
perhaps investors will not feel quite so exuberant about equity
markets," said Gregory, who heads Psigma Investment Management's
global equities team
BP, the UK's 6th largest company by market
capitalisation, rose 0.8 percent, adding 3 points to the FTSE
100, with traders citing renewed talk that U.S. energy giant
Exxon Mobil could be about to bid for the UK-listed
Bid talk has consistently circled BP since its oil spill in
the Gulf of Mexico in 2010. It still trades around 30 percent
below its level prior to the spill.
Britain's No. 3 grocer J Sainsbury climbed 1.8
percent with traders citing Citigroup's upgrade of the firm to
"neutral" from "sell" before its second-quarter trading update
due on Oct. 2.
Sainsbury's shares have risen 9 percent in the last 90 days
while earnings per share estimates for the full-year have risen
by an average of 0.5 percent over the same period, according to
Societe Generale's upgrade of GKN to "buy" from
"hold" helped the car and plane parts maker gain 1.3 percent.
(Reporting by David Brett; Editing by Ruth Pitchford)