UK stocks : FTSE 100 index falls 0.2 pct
Energy stocks, among Friday's biggest gainers, were the main drag on blue-chip sentiment as Nomura warned that the sector was inexpensive for a reason and attractive price-to-earnings or dividend yields masked high break-even oil prices.
"If headline production continues to be used as a proxy for cash flow for European Big Oil, we see no positive inflection point during 1H 2013," Nomura said in a note.
At the close, the FTSE 100 was down 13.72 points, or 0.2 percent at 6,107.86, having gained more than 2 percent since the start of 2013.
"If the reversal levels manage to prevent a trend continuation then chances are we may be setting up for a correction to the downside," said Sandy Jadeja, Chief Technical Analyst at City Index.
"The all important 'trend' remains bullish and this should not be ignored as such. Given the recent bullish swings, the indices appear to be setting the stage for a minor correction."
Banks were also lower, seeing earlier gains reversed ahead of Q4 earnings this week from U.S. peers JPMorgan Chase and Goldman Sachs.
But Lloyds Banking Group rose 1.6 percent and added the most points to the FTSE 100, with traders citing support from a Redburn note raising its earnings estimates and repeating its "buy" rating on the lender.
"Positive margin pressures continue to intensify in UK banking thanks now to
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