Britain's FTSE ends slightly lower as oil slips

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details)

* Blue (OTC BB: BUES - news) -chip FTSE 100 index ticks lower

* National Grid (LSE: NG.L - news) , M&S down on ex-divs

* Wolseley (LSE: WOS.L - news) falls on broker downgrades

By Atul Prakash

LONDON, June 2 (Reuters) - Britain's top share index ended slightly lower on Thursday, with companies such as National Grid and Marks & Spencer (Other OTC: MAKSF - news) falling after trading without the attraction of their latest dividend payouts and energy firms tracking weaker oil prices.

The blue-chip FTSE 100 index finished 0.1 percent at 6,185.61 points, dragged down by a 4.6 percent and 2.6 percent fall in National Grid and Marks & Spencer respectively.

The FTSE is down nearly 1 percent so far in 2016, and some 13 percent below a record high reached in April 2015, with concerns over a slowdown in China - the world's second-biggest economy - having hit global stock markets.

The UK energy index fell 0.1 percent after oil prices dropped more than 1 percent as the Organization of the Petroleum Exporting Countries ended its meeting without any apparent change in its crude production policy.

"There were high expectations that something positive was going to come out of the OPEC meeting and it turned out that there was no agreement again. As a result, energy stocks, which traded higher earlier, surrendered gains," Jawaid Afsar, senior trader at Securequity said.

"With (Other OTC: WWTH - news) crude oil trading towards the $50 mark, there is little upside potential in the short term for energy stocks."

Some traders said they would use any move higher on the FTSE to sell out and cash in profits, given uncertainty over the Brexit vote this month on Britain's membership of the European Union.

"I'd be looking to sell the rallies here," said Dafydd Davies, partner at Charles Hanover Investments.

Concern about the June 23 referendum on Britain's EU membership also led to British construction orders falling last month for the first time in more than three years.

Shares (Berlin: DI6.BE - news) in heating and plumbing supplies group Wolseley (EUREX: WLYH.EX - news) fell 1.1 percent, following broker downgrades on the stock, while the FTSE 350 Construction & Building Materials Index fell 0.1 percent.

The UK market showed little reaction to the European Central Bank's move to keep interest rates on hold, as expected. The ECB raised growth and inflation forecasts for the euro zone only modestly, by less than some had hoped.

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

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Mike Dolan, Markets Editor EMEA. (Additional reporting by Sudip Kar-Gupta; Editing by Toby Chopra)