Weak UK data, ex-dividends knock FTSE 100 index

* FTSE down 0.3 percent

* Broker comment lifts Burberry, Aggreko, G4S

By David Brett

LONDON, June 1 (Reuters) - Weak UK manufacturing and housing data pressured Britain's top share index on Wednesday, while the likes of Vodafone and Marks & Spencer fell after going ex-dividend.

In total a hefty 16.83 points came off the FTSE 100 due to a number of stocks losing their dividend attractions, with Capital Shopping Centres , Intertek , National Grid , and WPP also trading ex-dividend.

There was little encouragement for investors to try to extend sharp gains in the previous session, as the bleak UK economic data dovetailed with poor consumer confidence figures in the U.S. on Tuesday.

Weak British manufacturing activity fuelled fears about the pace of the UK recovery, while mortgage approvals were also lower than expected in April. [ID:nSLAVGE7UG] [ID:nAHLVGE7HR]

"The global recovery remains opaque with growth in developed markets still a concern," Jimmy Yates, head of equities at CMC Markets, said.

"Until the clouds on the horizon clear (impact of austerity measures in the UK, end of QE2 in the U.S.) it's difficult to see the market pushing on much further in the near-term."

By 1047 GMT, London's blue-chip index <.FTSE> was down 15.15 points, or 0.3 percent, at 5,974.84. The index is stuck in a 250-point trading range going back to mid-April.

It closed up 0.9 percent on Tuesday on hopes an agreement could be reached on a second bailout for indebted Greece.

Investors consolidated Tuesday's gains in the integrated oils <.FTNMX0530>. HSBC talked up value in the sector citing attractive price-earnings valuations and yield opportunities.

It said BP , up 0.3 percent, and BG Group were among the stocks with the highest potential return to its target prices.

LUXURY HAVEN

Paul Kavanagh, partner at Killik & Co said outperformance from financials and resources would be required for the FTSE to break-out of its current range, but while the market was stagnant recent underperforming stocks such BP and some of the retailers are a good bet short-term to boost returns.

Luxury goods firm Burberry gained 1.4 percent after upbeat broker comment from Numis, which raised its target price. Investors are positive on the group's plans to expand its store network overseas to tap into a growing luxury market.

Bullish broker comment also helped Anglo-French property investor Hammerson climbed 1.3 percent, as Morgan Stanley upgraded its stance to "overweight".

G4S rose 2 percent as Espirito Santo initiated coverage on the security services firm with a "buy" rating, saying its growth profile was undervalued.

And temporary power supplier Aggreko added 0.7 percent as Cannacord upgraded its rating to "buy" and raised its target price to 2,200 pence, citing long-term growth prospects.

Miners <.FTNMX1770> were higher, with Rio Tinto up 1.4 percent as Citigroup added the global miner to its most favoured UK metals and mining companies, on valuation.

Rio announced a joint venture with Chinalco to exploit opportunities in China, subject to Chinese approval.

The mining sector was boosted by an upbeat outlook from Xstrata's Chief Executive Mick Davis at a seminar of mining executives and policymakers. [ID:nL3E7GV3R1]

Glencore , however, fell 1.5 percent as the European Investment Bank froze lending to the commodities trader and its subsidiaries, citing "serious concerns" over the group's corporate governance. [ID:nLDE7500AA]

Wall Street futures pointed to a lower opening ahead of U.S. data releases on Wednesday including May Challenger Layoffs, due at 1130 GMT, and May ADP National Employment figures, due at 1215 GMT.

Investors will be looking for more optimism ahead of Friday's key U.S. jobs report after a recent slew of data from the World's largest economy missed expectations, including consumer confidence figures in the previous session.