* FTSE 100 down 0.1 percent
* 50-day moving average, at 6,451, to provide support
* Fresnillo leads; gold set for best week in a month
By Tricia Wright
LONDON, Aug 16 Britain's top shares drifted
lower on Friday as concern over less central bank stimulus took
its toll on sentiment, though with the index finding technical
support in the wake of steep falls in the previous session.
The FTSE 100 was down 5.41 points, or 0.1 percent,
at 6,477.93 points by 1109 GMT, stabilising after a 1.6 percent
drop seen in the previous session.
Analysts said that the 50-day moving average, currently at
6,451, would provide short-term support.
"We're sat on technical levels which I think is holding us
up," CMC Markets trader Matt Basi said.
"A lot of clients are saying that a break beneath 64
(6,400)is the indicator for the next level down but at the
moment we're around the moving average and for now it's likely
that we'll drift around this level."
The FTSE 100's steep falls on Thursday came after robust
U.S. jobless claims data, which fuelled concern the U.S. Federal
Reserve might, from next month, start cutting back its stimulus
- one of the major drivers of this year's equity market rally.
"I think this is just deflating a little bit of the QE
(quantitative easing) induced valuations to certain equities,"
Paul Kavanagh, a partner at Killik & Co, said.
"I would say that the nearer it gets back down to 6,000
again the more aggressively positioned one would be... because
you would start to see some valuations coming back into stronger
Kavanagh sees opportunities in the mining sector, the
biggest fallers this year by some margin, with the FTSE 350
Mining index down some 13 percent.
Over the period, the STOXX 600 Basic Resources index's
12-month forward price/earnings ratio has fallen to 10.5
times from 11.3 times, according to Thomson Reuters Datastream.
He also highlighted ad group WPP which, according to
Datastream, trades on a 12-month forward price/earnings ratio of
13.4 times against its 15-year average of 16.5 times.
Gold miners Fresnillo and Randgold Resources
led the risers on Friday with respective gains of 5.2
percent and 4.4 percent, with the precious metal set for its
biggest weekly gain in a month.
(Reporting by Tricia Wright, additional reporting by Francesco
Canepa; editing by Ron Askew)