Reuters: Hot Stocks: British shares pegged back by GlaxoSmithKline, HSBC

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British shares pegged back by GlaxoSmithKline, HSBC Aug 6th 2013, 07:48 Tue Aug 6, 2013 3:48am EDT * FTSE 100 index down 0.2 percent * Glaxo, HSBC knocked by analyst downgrades * Traders upbeat; GFT Markets targets 6,754 on index By Tricia Wright LONDON, Aug 6 (Reuters) - Britain's top share index edged lower on Tuesday as heavyweights GlaxoSmithKline and HSBC fell after downgrades by analysts, though traders saw scope for further near-term market gains. The UK benchmark was down 13.17 points, or 0.2 percent, at 6,606.41 by 0734 GMT, having slipped 0.4 percent on Monday, drifting back further from a two-month closing high hit last week. Drugmaker GlaxoSmithKline and bank HSBC accounted for most of the FTSE 100's drop. Glaxo shed 1.3 percent as Citi cut its rating to "neutral" from "buy", seeing the stock as fairly valued in the near term, while HSBC, whose first-half results missed expectations on Monday, fell 1.1 percent as Deutsche Bank cut its rating to "hold" from "buy". While the equity rally stalls, recent encouraging economic data, especially in the UK and the United States, along with the fact global central banks have committed to stick with loose monetary policies, provide continued cause for optimism. "If there is a dip I would see it as a buying opportunity... It looks like the (global) economy is catching up with the market," Shai Heffetz, MD of spreadbetting and CFD provider InterTrader, said. GFT Markets technical analyst Fawad Razaqzada said he saw no signs that the market had topped or was about to suffer a serious sell-off, with the 2007 peak of 6,754 remaining his immediate target. "As long as it continues to hold above 6,530/40 on a closing basis, then the bullish trend remains intact," he said. Miner Fresnillo led the blue-chip fallers, off 7.7 percent after posting a 29 percent drop in first-half core earnings and saying it would slash its dividend. Peer Randgold Resources fell 2.5 percent, with traders also attributing the declines to a weaker gold price. According to Thomson Reuters StarMine data, about 63 percent of STOXX Europe 600 index companies have reported results so far, of which around 56 percent have met or beaten profit forecasts. (Reporting by Tricia Wright; Editing by John Stonestreet) Link this Share this Digg this Email Reprints

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