* FTSE 100 up 0.1 pct
* Anglo America rises after results beat forecasts
* Tate & Lyle, Rolls Royce extend fall after results
By Alistair Smout
LONDON, Feb 14 Basic-materials shares helped to
keep Britain's top equity index on track for a second straight
weekly gain on Friday, offsetting a retailing sector pulled
lower by WM Morrison.
The index was up 1.4 percent for the week, rallying from
six-week lows at the beginning of February. It climbed above its
50-day moving average on Thursday, a technical signal which
suggested underlying support from buyers.
"We have managed to hold the December lows and, given the
buying levels on the weak market, we remain encouraged," said
Atif Latif, the director of trading at Guardian Stockbrokers.
"The FTSE still remains in an uptrend and we continue to see the
market pushing higher."
Basic materials added 6.2 points to the index and miners
gained 0.9 percent, the top sectoral riser. Mining
is up 6.2 percent this year, 4.2 percent of which has come in
the last week.
Global strategists at Citi recommended investing in basic-
materials shares with an emerging-market exposure, highlighting
lower capital expenditure and improved cash flow generation.
Decent results from Anglo American helped to encourage the
broader sector. The company beat consensus with its 2013
operating profit and reported a profit at its platinum unit.
"The results from Anglo platinum are pretty good and ...
they're getting costs down," said Matthew Hasson, the director
of mining equity sales at Numis Securities.
However, the stock was up just 0.1 percent, despite its
bullish sector. Issues specific to Anglo, such as rising net
debt and negative free cash flow this year, could weigh on the
shares, analysts at Jefferies said. They expect profit-taking on
a stock that is up over 16 percent already so far this year.
Overall, the FTSE 100 was little changed in
percentage terms, edging up 2.90 points to 6,662.32 points by
Weighing on the market was WM Morrison, down 2.2
percent after BNP Paribas cut its target price on the stock,
citing concerns that larger supermarkets are losing market share
to cheaper firms.
"Morrison's Christmas trading was a shock but to deliver
-7 percent like-for-like sales in January against a -6
percent comp ... suggests sales are unravelling," analysts at
Exane BNP Paribas write in a note.
"The consumer's embrace of the discounters has hurt all of
the mainstream grocers, but Morrison's geographic and
demographic positioning has left it exposed and its value
credentials have been most tarnished."
Fellow blue-chip grocer J Sainsbury was down 1.7