Britain's top share index rose slightly on Friday, extending its advance into a fifth consecutive session, as strength from banks and defensive stocks offset falls from miners in volatile trade. By 0914 GMT, the FTSE 100 was up 10.77 points, or 0.2 percent, at 5,335.86, after ending 0.9 percent higher on Thursday, its highest close since Jan. 21.
Traders put some of the volatility early on Friday down to futures and options expiry, which take place in London between 1000-1015 GMT.
Banks built on Thursday's strong advance, with investors still inspired by Barclays's forecast-beating results at the start of the week.
Barclays rose 0.8 percent, while Royal Bank of Scotland, scheduled to post results next week, was up 1.1 percent and HSBC added 0.4 percent.
RBS's revised long-term reward plan for top executives will be fully agreed with shareholders before it is put to the market, a top investor said, a move to avoid any investor revolt on the issue.
Miners fell, reversing the previous session's solid gains, as metals prices came under pressure from a stronger U.S. dollar after the Fed's first monetary policy move since December 2008.
Fresnillo, Randgold Resources and Antofagasta were among the worst off, shedding 1.2 to 1.9 percent.
Anglo American dropped 1.5 percent. The company declined to reinstate a dividend on Friday after posting a forecast-beating 51 percent fall in annual earnings per share on the back of falling metal prices.
The Dow Jones Industrials ended 0.8 percent higher on Thursday, but after the U.S. close the Fed signalled a quarter percentage point increase in its discount borrowing rate and U.S. stock futures dropped.
"This is one of those things that will give the market a bit of a pause for thought for a day or two, but the more serious rate hikes are still a long way off," said Peter Dixon, economist at Commerzbank.
DEFENSIVES IN FAVOUR
Defensive stocks were in favour as investors' risk appetite dwindled.
British American Tobacco was the top FTSE 100 riser, up 0.9 percent, bolstered by a target price hike from Nomura, while peer Imperial Tobacco rose 0.4 percent.
Consumer goods giant Unilever rose 0.6 percent after Swiss peer Nestle beat forecasts for 2009.
On the second line, Rentokil Initial topped the leaders board, adding 6.4 percent after the pest control to parcel delivery firm reported sharply higher profit, helped by cost cuts.
Later on Friday attention will be on the U.S. inflation numbers, due at 1330 GMT, with January core CPI seen up 0.3 percent, after a 0.1 percent rise in December.
"I think the FTSE will trade more or less sideways for the near term," said Commerzbank's Dixon.
"(This is) primarily because on valuation grounds I think there are good reasons for the market to go up, but on fear factor grounds we could see a bit of a sell-off — balancing those forces together it's a fairly dull outlook."
