Britain's FTSE set for week of modest gains, pharmas lead

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* FTSE 100 flat, set for third week of gains

* Retail sales drop weighs on pound

* Copper miners weigh while precious miners edge up

* Pharmaceuticals set for best day in a month

* AstraZeneca rises on successful drug trial

By Helen Reid

LONDON, Feb 17 (Reuters) - Britain's main share index wasflat on Friday as gains by pharmaceuticals were offset by banksand mining companies, and a drop in retail sales indicatedrising prices were biting into consumers' purchasing enthusiasm.

The blue-chip FTSE 100 index was flat in percentageterms by 1046GMT, recouping earlier losses. The pound's weaknessfollowing an unexpected drop in retail sales for January helpedsupport the index, though not enough to draw it convincinglyinto positive territory.

The oil & gas and mining stockswere the biggest weights on the index, while pharmaceuticals outperformed, headed for their best day in a month.

Standard Chartered Bank was the worst-performing onthe index, down 2.6 percent, with Royal Bank of Scotlandnot far behind, down 1.5 percent. Shares in both banks remainednear recent highs, though.

Retail sales data surprised to the downside, falling 0.3percent in January against expectations. Economists in a Reuterspoll expected sales to rise 0.9 percent, and no forecasterexpected a fall.

The figures implied consumers' appetite was slowing asinflation picked up.

The pound fell on the data, supporting the FTSE topare back its losses, although retailer Marks & Spencer's fell on the news, last down 1.2 percent.

Shares in Coca Cola HBC, the soft drinks bottler,were up 1.8 percent, extended gains after hitting their highestlevels since September 2013, maintaining Thursday's momentumafter well-received results and helped by broker Jefferiesraising its price target on the stock.

Pharmaceuticals companies Shire and AstraZeneca were top gainers. Analysts cited AstraZeneca'sannouncement it would expand the patient base of Lynparza, adrug used to treat breast cancer.

"The AstraZeneca turnaround story largely hinges on whathappens to its oncology portfolio, and progress with Lynparza isan important element of that turnaround," Berenberg analystssaid in a note.

Shire was enjoying the glow from itsbetter-than-expected results on Thursday.

Anglo American, Rio Tinto and BHP Billiton were among top fallers as the price of copper pared backfrom its highs on profit-taking, while supply concerns remainedat mines in Chile and Indonesia.

A tick-up in gold prices, meanwhile, supported preciousmetals miners Fresnillo and Randgold Resources,top gainers and last up 1.2 to 1.3 percent.

Miners have supported the FTSE higher recently. The indexwas set for its third week of gains.

The mid-cap index, which is more domesticallyweighted, was down 0.2 percent.

Telecom company Inmarsat was the top faller on themid-cap index, down 5.1 percent after a series of brokerdowngrades.

UBS downgraded the stock to "sell", saying it forecastearnings for the Maritime segment, which accounts for half thecompany's revenue, down 4 to 9 percent below the market. (Reporting by Helen Reid; Editing by Angus MacSwan)