* FTSE 100 down 0.1 pct
* Vodafone weighs as it guides for earnings fall
* M&S also falls as market sees downgrade to future earnings
By Francesco Canepa
LONDON, May 20 Selloffs in mobile operator
Vodafone and retailer Marks & Spencer capped Britain's main
equity index on Tuesday after both companies unveiled
Vodafone said core earnings would fall in 2015 and
M&S cut its capital expenditure estimate, with some
brokers saying this implied a downgrade to 2015 earnings.
"It's all about future forecasts and the market is not
receiving them well," said Manoj Ladwa, head of trading at TJM
Their stocks, down 3.5 percent and 2.3 percent respectively,
were the top fallers on Britain's FTSE index, which was down
7.63 points, or 0.1 percent, at 6,836.92 points at 0749 GMT .
The index, which hit a 15-year high on Thursday, was holding
above support at 6,800, corresponding to last week's low, in a
sign investors were prepared to buy into market dip.
"The FTSE is not showing signs of a selloff from here," said
TJM's Ladwa, who expected the market to head towards 6,900
Vodafone was responsible for most of the FTSE's fall on
Tuesday, knocking 7.9 points off the index.
The company's weak update compounded a disappointing
reporting season for telecoms companies, which are struggling
with stiff competition and the need to step up spending.
Around 75 percent of the telecoms services companies in the
STOXX Europe 600 index which reported results through May 19
missed analyst estimates, the highest proportion among all
European sectors, StarMine data showed.
Vodafone plans to invest around 19 billion pounds ($31.97
billion) over the next two years, which includes the money
assigned as part of its investment programme called Project
Spring, resulting in lower earnings next year.
"(Vodafone) makes substantial investments in order to make a
clearer distinction between the quality of its network and the
competition," analysts Espirito Santo wrote in a note.
"Should this be achieved, then alongside an improving macro
environment Vodafone shares should benefit, however at this
juncture, visibility of success is low and competitive forces
($1 = 0.5943 British Pounds)
(Reporting By Francesco Canepa; Editing by Andrew Heavens)