UK defensives weigh on FTSE 100

Defensive shares including utilities giant Severn Trent weighed on the FTSE 100 during morning trading, keeping a lid on gains following a tough week which has seen shares retreat further on US QE fears.

The FTSE 100 was up just 9 points at 6,349, having shed over 1% yesterday, as investors cautiously picked up sold-off stocks. Among them, Aberdeen - which was hit by a downgrade to sell by Bank of New York Merrill Lynch earlier this week - was up 5% at 415.8p, making up for some of the recent declines. However, the wider market was pegged back by big losses for Severn Trent, one of the UK's largest utilities, after a deadline for bid-talks passed. Shares were down 8.3% at £17.76 in reaction, while Vodafone was also down sharply on bid talks. The group's shares were off 4.3% at 1...