Britain's top share index steadied at the close on Friday, consolidating a week in which shares have closed in on their 2016 highs, although commodity stocks paused after a strong run. The FTSE 100 index finished 0.19 percent lower at 6,189.64 points after hitting an intra-day high of 6,237.02, not far from its 2016 high of 6,242.32. The benchmark index managed to rise 0.8 percent this week after slipping in the previous week.
Much of the recent strength in the index has been down to appetite for mining and oil stocks, which rose on Thursday as a weaker dollar made dollar-denominated commodities cheaper for holders of other currencies. The oil and gas sector hit its highest level since November, but pulled back on Friday as oil turned lower. Gains in miners were capped by a dip in copper and gold prices, as well as a downgrade by Credit Suisse.
IG analyst Chris Beauchamp said the sector, up 60 percent from January lows, had done fantastically well but slightly weaker commodity prices on Friday after enjoying a good day put some pressure on the sector. "The China demand story continues to pick up, and if the dollar weakness continues, then they should recover, and that will help the FTSE 100 hit new highs," Beauchamp said.
Banks and other financial stocks were in demand. The British market notably outperformed euro zone banks, with Italian banks volatile again due to uncertainty over mergers in the sector. Analysts said British-listed banks were more insulated from negative interest rates in the euro zone, which have hit bank profitability. An official said the European Central Bank can cut interest rates again if the euro zone's economy fails to pick up.
Among individual movers, Berkeley Group fell 2.2 percent after an interim management statement. While it said that it saw results coming in at the top end of expectations, reservations were about 4 percent lower than 2014/15. Some traders said that after a 10 percent rally in a little over a week leading up to the statement, there were a lack of catalysts to buy the stock, especially given changes to stamp duty that are coming into force next month.
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