Weak Commodities Weigh On FTSE Midday; Banks Rise

By 1147 GMT the FTSE 100 was 12.19 points lower at 4,279.68, snapping a four-session winning streak.

Britain's top share index was 0.3 percent lower at midday on Monday, with weakness in heavyweight commodity companies offsetting gains by banks and property stocks.

By 1147 GMT the FTSE 100 was 12.19 points lower at 4,279.68, snapping a four-session winning streak.

U.S. blue-chip index futures pointed to a lower open on Wall Street on Monday, as investors await approval of Washington's huge stimulus plan and bank rescue package.

"Investors are closing positions rather than taking up new ones," said Joshua Raymond, market strategist at City Index.

"We need to see a vote on the stimulus sooner rather than later," Raymond added. "Last week's jump in U.S. unemployment has made the package even more significant, with investors becoming increasingly nervous in case the package goes to a vote and fails.

Weakness in heavyweight energy stocks was the main drag on blue-chip sentiment, with the sector lower as crude prices held around $40 a barrel.

BP lost 0.7 percent, and Royal Dutch Shell shed 1.2 percent. BG Group, which launched a $538 million bid for Australian coal seam gas firm Pure Energy, fell 1.1 percent.

Miners were also lower, with Xstrata, Rio Tinto, Antofagasta and Anglo-American down between 0.9 and 3.3 percent.

Rio Tinto fell as director Jim Leng quit the group and will not become chairman as had been planned, raising speculation he may have objected to a potential deal with the group's top shareholder, state-run Chinese firm Chinalco.

BSkyB was the biggest FTSE 100 faller, down 3.6 percent as Cazenove cuts its rating to "in line", saying the satellite broadcaster's investment plans, dollar strength and recent soccer rights auction all led to pressure on forecasts.

BARCLAYS LEADS BANKS HIGHER

Banks were the main positive focus as Barclays reported a 2008 profit of 6.1 billion pounds, ahead of analysts' forecasts but down 14 percent on the year after 5 billion pounds of writedowns.

Barclays said it expected 2009 to be "another challenging year", with bad debt charges likely to rise as recession takes its toll on the economy.

Barclays gained 9.2 percent, while Royal Bank of Scotland added 4.6 percent, and Standard Chartered put on 2.9 percent.

But Lloyds Banking Group was down 1.8 percent, and HSBC fell 0.6 percent.

British finance minister Alistair Darling, writing in the Sunday Telegraph, said he planned an independent review of banks' management and bonus structure.

Property company Hammerson was the top blue-chip riser, up 9.6 percent after it launched plans to raise 584 million pounds via a rights issue aimed at curbing debt and bolstering its balance sheet against a deep UK property slump.

British Land is also considering an equity fund raising, industry sources said.

British Land shares added 5.4 percent, while Land Securities rose 5 percent, and Liberty International gained 7.5 percent.

But mid-cap electricals retailer DSG International shed 4.7 percent after the Sunday Telegraph reported it was also mulling a rights issue.