* FTSE 100 up 0.1 pct
* Index set for weekly rise of 3.1 pct
* Health care and consumer staples power gains
* Rally in bank stocks falters
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By Peter Hobson
LONDON, Dec 9 Britain's top share index rose
slightly on Friday, putting it on track for its best week since
July, led by shares in health care and consumer staples
companies, but a rally in bank stocks faltered.
The blue chip FTSE 100 index was up 0.1 percent at
1038 GMT, taking its gains for the week to more than 3 percent.
The week-long rally has been driven by financial stocks,
which rose across Europe after the "No" result in Italy's
constitutional referendum inflicted less damage than thought,
and after the European Central Bank extended its stimulus
The UK banking index has gained 7.6 percent
this week, on track for its best week since April and only
slightly lagging the 9.1 percent surge in the wider European
But the rally appeared to be running out of steam, with
shares in Barclays, Lloyds Banking Group and
Prudential down between 1.7 and 2.6 percent.
A decision by Britain's financial watchdog to delay its
final verdict on setting a deadline for consumers to claim
compensation for being mis-sold debt repayment insurance also
put pressure on banks.
After large gains for banks in recent days, "it's not
surprising to see a bit of weakness creeping in," said Chris
Beauchamp, chief market analyst at traders IG.
Shares in "defensive" stocks with steadier incomes and
dividends rose, keeping the index in positive territory.
Pharmaceutical companies GlaxoSmithKline, Shire
and AstraZeneca were up by between 1.1 and 1.8
percent, while producers of consumer staples such as British
American Tobacco, Imperial Brands and Unilever
gained between 0.6 and 0.9 percent.
Rising gold prices boosted precious metals miners Fresnillo
and Rangold Resources by 2.9 and 1.6 percent
Shares in outsourcing company Capita slumped early by as
much as 11 percent taking its losses since issuing a profit
warning on Thursday to more than 20 percent.
The warning was the second in three months by Capita, which
blames Brexit-related client indecision for weaker orders. It
said it would sell assets and trim costs to protect its balance
But Barclays bank said Capita was "selling the wrong bit"
and a recovery wouldn't come quickly.
"A near term re-rating is unlikely until growth stabilises
and the strategic fog clears - but neither is likely for another
6-months in our view," Barclays analysts said.
Capita's shares later trimmed losses to just over 2 percent.
Rival outsourcer Mitie, which also issued a second
profit warning in November, fell 2.6 percent.
A plan by Daily Mail and General Trust to cut its stake in
Euromoney, publisher of the Euromoney magazine, to about 49
percent from about 67 percent to improve its investment
portfolio and lower its debt hit both stocks.
Euromoney slipped 6.8 percent, while shares in Daily Mail
and General Trust were down 1.3 percent.
(Reporting by Peter Hobson Editing by Jeremy Gaunt)