September 11, 2013 / 8:11 AM / 4 years ago

FTSE retreats from one-month highs, Kingfisher weak

* FTSE 100 down 0.2 percent
    * Kingfisher retreats after profits drop
    * ARM's shares rise on iPhone launches
    * UK labour market data due at 0830 GMT

    By Tricia Wright
    LONDON, Sept 11 (Reuters) - Britain's top shares dipped on
Wednesday as investors locked in profits on recent solid gains,
with Kingfisher among the top fallers after its profits
edged lower in difficult markets.
    The FTSE 100 was down 9.63 points, or 0.2 percent,
at 6,574.36 points by 0740 GMT, having firmed 0.8 percent in the
previous session, when it hit its highest close since August 14.
    The index has gained almost 3 percent since a late August
trough but remains more than 4 percent off 13-year highs hit in
    Receding concerns about a military attack against Syria are
helping to keep the UK benchmark around one-month highs, but
expectations of a near-term scaling back of stimulus by the U.S.
Federal Reserve has made some traders cautious.
    The Fed meets on September 17-18, when policymakers might
well decide to taper the huge bond-buying programme which has
driven much of this year's global equity rally. 
    "We've had the relief rally on the Syrian situation not
escalating... (but) there's still the taper risk," said Nick
Xanders, strategist at BTIG.
    "I think we'll probably drift a bit lower as people take
some profits."
    GFT Markets technical analyst Fawad Razaqzada sees support
for the index at 6,500, which has previously acted as
    Profit-taking hit Kingfisher, even though it met first-half
earnings forecasts with a 1.6 percent fall. Shares in Europe's
biggest home improvements retailer fell 2 percent, having jumped
around 45 percent in 2013 against a rise of about 12 percent on
the FTSE 100 index. 
    "Kingfisher has had a great run. The numbers are okay, but
not great," BTIG's Xanders said.
    Chip designer ARM Holdings jumped 5.2 percent,
grabbing the top spot on the FTSE 100 leader board after its
partner Apple unveiled two new iPhones late on Tuesday.
    Apple's 5s smartphone uses its own 64-bit processor, the A7,
reportedly based on an ARM design. Analysts expect the new
processor to result in a higher royalty rate to ARM compared to
the current generation of 32-bit processors. 
    Trading volume in ARM was robust at 41 percent of its 90-day
daily average, against the FTSE 100 on 11.5 percent.
    UK labour market data will be closely watched, particularly
after the central bank said last month it did not plan to raise
interest rates before unemployment had fallen to 7 percent.
    ILO July unemployment rate data is due at 0830 GMT,
alongside August UK claimant count data. 
    Stocks trading without the attraction of their latest
dividend, namely Admiral Group, G4S, Hargreaves
Lansdown, Land Securities and Standard Life
, trimmed up to 1.4 points off the FTSE 100 on Wednesday.

 (Reporting by Tricia Wright; Editing by John Stonestreet)

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