FTSE: 5,762.71 (-23.38) Mid 250: 11,441.57 (-69.67) Small Cap: 3,173.01 (+6.70)LONDON EQUITIES slipped back yesterday as traders took profits from the recent rebound in the mining and banking sectors after two sessions of strong gains.

The FTSE 100 fell 23 points to 5,762.71, a loss of 0.4 per cent, after an earlier return to risk on global markets, which had tracked the easing crisis at the Fukushima nuclear reactor in Japan, took indices high enough to prompt traders to cash in some of the gains.

Nonetheless, the modest selling left European indices back toward the levels they held before March 11th, when the Japanese earthquake hit. Financial stocks, which were in demand during morning trade, fell back as the session developed.

Man Group, the world’s biggest listed hedge fund by market value, lost 1.1 per cent to 242¾p.

Resource stocks followed the same pattern. Mexican silver miner Fresnillo fell 2 per cent to £14.55 and Xstrata lost 1.4 per cent to £13.75.

Money made in riskier sectors during the recent outbreak of volatility looked to be heading into more defensive areas of the market, with utility companies and support services stocks in demand. It led to some questions about the near-term outlook for the FTSE 100.

“The FTSE 100 reached the first base support of 5,600 and has since seen a bounce higher . . . the index is heading straight into resistance between 5,823-5,877. If cleared then the 6,117 level may be a possibility for the bulls. A failure at resistance could set the stage for a further bearish decline to see the index reach lower for 5,445,” said Sandy Jadeja, chief technical analyst at City Index.

GKN made the biggest single loss on the index, down 3.8 per cent at 188.7p, after French newspaper reports linked the engineer with bid interest in Paris-listed aerospace component-maker Latecoere.

Punch Taverns spent a second successive session at the top of the FTSE 250 after it confirmed weekend press reports of plans to spin off its managed pubs division into a separate company.

The stronger performance of its “Spirit” division contrasts with problems within its tenanted outlets. It also said it would seek to cut pubs within its tenanted division by 50 per cent, disposing of about 3,000 by the end of the summer. Shares in Punch rose 2.3 per cent to 75.2p. – Copyright The Financial Times 2011