LONDON: Britain's top share index steadied after a choppy session on Monday, with gains in the pharmaceutical sector and in supermarket Sainsbury's outweighing a fall in mining stocks.
After a subdued start to the session, the UK's FTSE 100 index was down 0.09 percent by 1523 GMT, broadly in line with the wider European market.
Britain's second biggest supermarket chain Sainsbury's was up about 1 percent after it was given a clear run to buy Argos-owner Home Retail for 1.4 billion pounds ($2 billion) after the market closed last Friday.
Steinhoff International, Sainsbury's rival in the bid for the takeover, has pulled out of the race.
"There will be much less upside surprise for the company with Argos in tow down the line. What still remains unclear to us though is the trajectory of underlying Argos profitability, and this will be an important variable over time," Clive Black, head of research at Shore Capital, said in a note.
Shares in Sainsbury's were also helped by a price target upgrade from broker Nomura. Shares in Home Retail gained 1.2 percent. However, British retailer Marks and Spencer fell 1 percent after UBS cut its target price on the stock.
The strongest gainer on the FTSE 100 was pharmaceutical company Shire which rose 4 percent.
"We've seen a plethora of different broker upgrades on (Shire) over the last number of weeks ... I think it's the fact that it has had a very decent Q4," said Brenda Kelly, head analyst at London Capital Group. The company's announcement of a dividend also cheered investors, she added.
Among top fallers, the British mining index fell 0.7 percent, dragged down by Anglo American, Glencore, Antofagasta and BHP Billiton , all down between 0.4 percent and 3.6 percent.
"Unless we see global growth starting to expand and the need for basic resources actually starting to expand more, then we could be looking at a temporary bottom," London Capital Group's Kelly said.
The sector is still holding on to gains for the year, up more than 25 percent since the beginning of 2016.
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