FTSE extends losses as retailers and miners fall

LONDON, Apr 12 (Reuters) Britain's biggest shares slipped to their lowest levels in over a week on Wednesday, with retailers down after GUS issued a cautious forecast for the UK and as miners eased from recent gains.

BHP Billiton lost 4 percent and Antofagasta dropped 2.5 percent, mirroring a softening in copper and zinc prices after both metals rushed to record highs a day earlier.

The London Stock Exchange was a standout gainer, surging 14 percent to the top of the mid-cap leaderboard after the Nasdaq Stock Market became the LSE's biggest shareholder. Analysts said the move could herald a full takeover of the LSE.

The FTSE 100 was down 38.4 points at 5,978.1 by 0956 GMT, near a session trough of 5,974.5 points, its lowest level since April 3.

The drop marked a second losing session for the blue-chip index, taking it further away from recent 5-year highs.

Analysts said investors were booking profits before most European stock markets close on Friday and Monday for the Easter holiday.

Further bid activity might then drive share prices higher.

''It's been a few weeks since we've had any action so that's what we're waiting on,'' said Jim McCafferty of stockbroker Seymour Pierce.

Rumours of takeover approaches have been rife over recent weeks but few offers have materialised.

''For valuations to be justified it would also be helpful if we saw some earnings upgrades and I don't think we're really seeing those right now,'' McCafferty added.

There have also been jitters about whether surging commodity prices will affect consumer spending and corporate profits outside of the resources sector.

GUS TAKES A HIT Retailer GUS was among the heaviest FTSE allers, down 3 percent as worsening sales at its DIY unit Homebase outweighed a strong performance from its credit checking unit Experian. The group's chief executive said he remained cautious on the outlook for UK retailing, especially in the do-it-yourself sector.

Those concerns filtered through to others in the sector, including Kingfisher , down 2 percent, and Travis Perkins , off 1.2 percent.

A handful of stocks managed to buck the lower trend, led by power producer British Energy , up 1.9 percent, as European carbon dioxide emissions prices hit fresh record highs.

The rise, if prolonged, will feed into higher electricity bills, and British Energy, which generates most of its power through nuclear plants, does not have the same exposure to the rising costs caused by the higher emissions prices as its coal- and gas-focused rivals.

Brewer SABMiller also made headway as it unveiled rising beer volumes and strong business in Europe and Asia. The stock rose more than 2 percent.

In the pharmaceutical sector, AstraZeneca ticked up 0.7 percent as Deutsche Bank raised its price target on Europe's third-biggest drug maker.

(Additional reporting by Louise Heavens) REUTERS PV PM1616