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* FTSE 100 flat
* Shell, BP among the top risers
* Polymetal leads precious metals miners lower
* Sky pulls back after Friday's Fox bid surge
By Alistair Smout
LONDON, Dec 12 Britain's top share index held
near a one-month high on Monday, supported by a surge in the oil
sector after OPEC and non-OPEC producers agreed to curtail oil
production in their first joint action since 2001.
The FTSE 100 touched a fresh one-month high in early
deals of 6,976.78, before pulling back slightly. The index was
last down 2.21 points, flat in percentage terms, at 6,952.00.
Energy stocks contributed around 30 points to the index,
with Royal Dutch Shell up 3.3 percent, the top FTSE 100
gainer, and BP up 2.4 percent.
Oil prices soared around 5 percent on the deal, which was
seen strengthening last month's OPEC deal to reduce the supply
of oil on the market.
"The OPEC deal made two weeks ago hinged on the non-OPEC
members also agreeing to cut production - many members of OPEC
had stated that they would only agree to cut production on the
basis the non-members also agreed," said James Hughes, chief
market analyst at GKFX.
"The agreement puts the issue of a global oil glut to rest,
but only for now," he said.
Among fallers, Polymetal dropped 4.5 percent after
RBC cut the stock to "sector perform" from "outperform".
"Polymetal remains an industry-leading precious metals
company ... However, with increasing gold price volatility, high
levels of 2017 capex and a higher (free-cash flow) breakeven
price than peers we downgrade to Sector Perform," analysts at
RBC said in a note.
Other precious metals miners Randgold and Fresnillo
fell 2.8 percent and 2.5 percent respectively as gold
fell to a 10-month low.
Shares in Sky edged down after seeing a record gain
of nearly 27 percent on Friday after a $14 billion takeover bid
from Twenty-First Century Fox.
The stock pulled back 0.6 percent on Monday, as shareholders
and analysts said the offer represented a "low-ball" bid, with
one major shareholder set to reject the offer.
Fellow broadcaster ITC dropped 2.8 percent.
Retailer Marks and Spencer rose 1.6 percent, benfitting from
an upgrade to "buy" from Bank of America-Merrill Lynch, who cite
confidence in the company's turnaround story and improving cash
(Reporting by Alistair Smout; Editing by Andrew Heavens)