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* FTSE 100 down 0.5 percent
* Index closes week below 6,600, stuck in a tight range
* BSkyB, Rolls Royce among the biggest top fallers
* Pearson surges after reiterating full year guidance
By Alistair Smout
LONDON, July 26 Britain's FTSE 100 took its
first weekly fall in more than a month, faltering at resistance
levels and led lower by weakness in BSkyB and Rolls Royce on
The FTSE 100 closed down 33.16 points, or 0.5 percent, at
6,554.79 points, failing to hold above recent resistance around
seven-week highs just above 6,600 and still 4.7 percent off
13-year highs made in May.
"We will make new highs, but not necessarily any time soon.
We've had a really good bounce back so some kind of
consolidation makes perfect sense," Alan Higgins, UK chief
investment officer for Coutts, which manages 30.8 billion pounds
($46.9 billion) worth of assets, said.
"However, with decent yields and relatively low multiples,
the UK remains one of the more attractive markets."
The index snapped a four-week winning streak, retracing last
week's gains but falling no further. The index has traded in a
narrow 145-point range for the last fortnight.
Among the top fallers was BSkyB, down 3.3 percent,
after the broadcaster announced a share buy-back size at the
lower end of expectations. It forecast the consumer environment
will remain challenging and announced new investments which
could dent next year's profit.
Rolls Royce fell 3.2 percent to retrace most of
Thursday's post-earnings surge. While the company announced a 34
percent rise in profit, analysts at Deutsche Bank saw the
company's cost control as disappointing, and downgraded the
stock to "sell" from "hold".
The falls came despite general optimism about the earnings
season. Pearson gained 6.1 percent after confirming its
Of the FTSE 100 companies who had reported second quarter
earnings by Thursday's close, 60 percent beat or met
expectations, compared to 50 percent of their euro zone peers in
the EuroSTOXX 50, according to Thomson Reuters StarMine.
"Decent earnings have been factored in to a certain degree,
and the FTSE 100 is finding little in the way of momentum to the
upside," Manoj Ladwa, head of trading at TJM Partners, said.
"We've had a good run, bouncing from 6,000 to 6,600, and
it's running out of steam now. I can't see a huge amount of
upside from equities in the near term."
(Additional reporting by Toni Vorobyova; Editing by Ruth