* FTSE 100 slips 0.1 pct, just below 1-month highs
* BSkyB rises to near 12-year high after revenues rise
By Sudip Kar-Gupta
LONDON, Oct 17 Britain's top share index edged
lower on Thursday as a temporary fix to the United States' debt
issues underwhelmed investors, although media group BSkyB
outperformed after posting higher sales.
A last-minute deal to lift the U.S. debt limit paved the way
for the U.S. government to re-open after more than two weeks,
but it secured funding only until Jan. 15 which raised the
likelihood of another round of political brinkmanship.
The blue-chip FTSE 100 slipped by 0.1 percent, or
9.02 points, to 6,562.97 points in mid-session trade, hovering
just below one-month highs. The index remains up by 11 percent
since the start of 2013.
"The market's muted reaction to the news can be interpreted
as a general feeling that rather than solving the underlying
problem, the U.S. government has merely extended the time it has
to tackle the issue," said Saxo Bank trader Adam Seagrave.
BSkyB bucked the market fall with a 5.8 percent rise that
pushed the stock to a near 12-year high, as analysts homed in on
the fact that its revenue rise showed BSkyB had managed to fend
off challenges to its sports offering from rival BT.
Some traders said the FTSE's decline would provide a good
opportunity to step in to buy up equities on the cheap.
They argued that despite the clouds cast by the U.S. debt
situation, many fund managers still had little choice other than
to buy up equities due to the higher returns on offer from the
stock market than the bond market, where returns have been hit
by injections of liquidity by world central banks.
"Fund managers cannot afford to miss the rally," said Toby
Campbell-Gray, head of trading and risk at Tavira Securities.
JN Financial trader Rick Jones said he was targeting a
year-end rally for the FTSE which would push the index up to the
6,900-,7000 point range.
"We've not been shorting the market at all, we've been
extending long positions. We welcome dips and we've been buying
into them," said Jones.
(Additional reporting by David Brett; editing by Stephen