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Oil companies lead Britain's FTSE lower as crude prices fall

Fri, 14th Aug 2015 11:30

* FTSE 100 down 0.2 pct

* TUI adds 2.7 pct to Thursday's 6.6 pct jump

* ARM helped up by positive Barclays note (Recasts, updates prices)

By Liisa Tuhkanen

LONDON, Aug 14 (Reuters) - Britain's top equity index edgedslightly lower on Friday, with a decline for commodities stocks,such as BP and Royal Dutch Shell, overshadowinggains in travel group TUI.

The blue-chip FTSE 100 index eased 0.2 percent by1111 GMT after a near-flat close of 6,568.33 points on Thursday.

Oil producers and oilfield service providers led the losersas U.S. crude oil prices dropped to their lowest in almost 6-1/2years, with huge stockpiles and refinery shutdowns heighteningconcerns about global oversupply.

Royal Dutch Shell, Weir Group and Tullow Oil all declined about 1 percent, in line with the FTSE 350Oil & Gas Financial index.

BP slid the most, down 1.3 percent, after a U.S. judge onThursday found that it manipulated the natural gas market in2008, as alleged by the U.S. energy regulator.

"Ultimately, the commodities market does remain underpressure," London Capital Group analyst Brenda Kelly said.

On the upside, TUI was the biggest blue-chip gainer after JPMorgan and Jefferies lifted their target price on the stock,sending the price up 2.7 percent after a jump in the previoussession when it forecast earnings at the top end of analysts'expectations. [ID;nL5N10O0QV]

Among other individual gainers, chipmaker Arm Holdings rose 0.7 percent.

"ARM's equity story will continue to be one based on strongtop-line growth contributing to sector-leading earnings and cashflow growth," Barclays wrote in a note.

"We see both near- and long-term prospects being as strongas ever, although recent concerns around end market growth havecaused a material underperformance for ARM shares."

The FTSE 100 rose to a record 7,122.74 points in late Aprilbut has since given up most of the gains it made in 2015. (Editing by Louise Ireland)

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