FTSE:6,082.99 (–4.39 ) Mid-250:11,828.29 (+0.53) Small Cap:3,297.35 (+2.16)

BRITAIN’S LEADING share index slipped yesterday from a 32-month high hit in the previous session as further monetary tightening in China dampened miners and left defensive stocks in demand.

“Just a bit of consolidation is probably what we are going to see. Consolidation could incorporate a 5 per cent pull back quite easily,” said Philip Lawlor, investment strategist at Smith Williamson.

The UK benchmark has risen 3.1 per cent this year, but it underperforms a 5.4 per cent rise in the pan-European Stoxx Europe 600 as mining stocks have been suffering on concerns over policy tightening in top consumer China.

Miners fell 1.7 per cent, with Rio Tinto and BHP Billiton down 2.3 per cent and 2.2 per cent, respectively.

Anglo American dropped 2.1 per cent, with traders citing disappointment over its dividend and the outcome of the attempted sale of its unwanted Tarmac UK building materials business.

African Barrick Gold, however, advanced 3.8 per cent, with traders citing market chatter about bid interest.

The company declined to comment.

Banks also came under pressure yesterday, down 1.1 per cent, although they were up 2.3 per cent this week after solid results in the sector.

Barclays was yesterday down 4p to 329.6p, part-nationalised Royal Bank of Scotland off 0.5p to 48.5p, and HSBC 8.1p lower at 722.8p.

Water groups Severn Trent and United Utilities were enjoying better fortunes – up 17p to 1471p and 7p to 594.5p respectively – after broker Goldman Sachs upgraded stocks in the sector.

Retailers were firmer in general, with Kingfisher up 2.7 per cent and Next up 1.9 per cent, after British retail sales rebounded sharply in January after heavy snow caused the biggest December month-on-month fall in sales volumes on record.

Defensive stocks were also in demand, with Imperial Tobacco, British American Tobacco and Unilever up between 1 per cent and 3.5 per cent.

However Credit Suisse’s private bank said in a note that it had shifted back to a more cyclical bias in its strategy, moving energy and chemicals to “overweight” and downgrading food producers, telecoms and utilities to “underweight”. – (Reuters/PA)