RTRS:Energy stocks drag FTSE down as oil wanes, miners rise
(Reuters) - Britain's top share index was lower on Monday as sentiment remained fragile with falling energy stocks outpacing slight gains for miners, as analysts urged investors to take advantage of the recent sector sell-off.
The FTSE 100 .FTSE was down 21.07 points, 0.4 percent at 5,916.10 by 4:11 a.m. EDT, having fallen around 1 percent in the previous week.
Energy firms fell as crude retreated by around 1 percent hurt by global growth concerns and a strong dollar .DXY, which extended its winning streak against a basket of currencies, and is at its highest level in a month.
Miners, however, rose marginally as analysts said the recent sell-off in the sector provided a good entry opportunity for investors.
"We are anticipating a broad slowdown in commodity consumption but not a crash, which we think is beginning to be priced into commodity and commodity Equities," Heath Jansen, analyst at Citigroup.
"We would view this sell-down as an opportunity to purchase high-quality names in the mining sector."
Citigroup's preferences were Xstrata (XTA.L), Rio Tinto (RIO.L), and First Quantum (FQM.L) up between 0.4 and 2.3 percent.
Antofagasta (ANTO.L) gained 0.4 percent as Citigroup upgraded the stock to "neutral" from "sell" after recent share price weakness.
Kazakhmys (KAZ.L), the world's 10th largest copper miner, climbed 0.7 percent after announcing plans to complete a secondary listing in Hong Kong by the end of June, a move that will boost its presence in China -- the world's biggest copper importer.
DEBT CRISIS
Banks waned ahead of a meeting of euro zone finance ministers, who are likely to back a bailout package for Portugal and pressure Greece to announce more austerity steps to secure further emergency funding.
The talks, however, were overshadowed by charges against IMF chief Dominique Strauss-Kahn for attempted rape.
"The Strauss-Khan development shouldn't fundamentally effect the outcome of the meeting but it does cast a shadow over the proceedings," Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said.
Elsewhere, Centrica (CNA.L), down 1.6 percent, was among a number of defensive stocks heading south as JPMorgan counseled against tucking into perceived defensive sectors.
"We advise against chasing Defensives and would remain underweight Telecoms, Utilities and Pharmaceuticals on a 6-12 month horizon," JPMorgan advised investors in an equity strategy note.
The broker said it remained "overweight" in technology, chemicals, autos, capital goods and financial sectors.
