Banks, defensives push FTSE higher

By David Brett

LONDON (Reuters) - The leading equity index closed marginally higher on Friday as positive financial and defensive stocks outpaced weaker commodity shares, which tracked a decline in crude and metals prices.

The FTSE 100 index .FTSE rose 2.01 points, or 0.1 percent, to 4,236.28 points in thin trading, with U.S. markets closed for the Independence Day holiday.

"Volumes are light. There's nothing going on. Everyone's watching Andy Murray in the tennis," said Jimmy Yates, head of equities at CMC Markets, referring to Murray's semi-final match against American Andy Roddick at Wimbledon late on Friday.

London's blue chip index finished the week lower for a third straight week, a pattern not seen since the lows of March. The index has jumped 22.4 percent since then.

Banks gained, rebounding after falls on Thursday.

Royal Bank of Scotland (RBS.L) added 0.9 percent, while Barclays (BARC.L), HSBC (HSBA.L) and Lloyds Banking Group (LLOY.L) rose 0.9-2.8 percent.

"There's a bit of bottom fishing going on out there, especially with the market's inability to break the 4,200 support level," said Yates.

Defensive stocks also found support as investors' risk appetite faded following the U.S. jobs disappointment, with tobacco and drug shares moving higher.