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Britain's FTSE slips though Marks & Spencer, pharma rally lend support

* FTSE 100 down 0.4 pct

* Marks & Spencer (Other OTC: MAKSF - news) rises after beating sales expectations

* Randgold Resources rallies on upgrades

* AstraZeneca (NYSE: AZN - news) remains in favour, at highest since February

* Ex-divs weigh (Recasts, adds detail and updates prices)

By Kit Rees and Alistair Smout

LONDON, April 7 (Reuters) - Britain's top share index dipped on Thursday, although rises in pharmaceutical stocks and retailers after a well-received update from Marks and Spencer supported UK equities.

The FTSE 100 was down 21.96 points, or 0.4 percent, at 6,139.67 points by 1416 GMT, slightly outperforming the broader European market which extended losses after Wall Street opened lower.

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Marks & Spencer rose 2.4 percent in strong volumes of 143.5 percent of its 90-day average, after it posted a decline in sales that was less severe than expected.

Traders took heart from new Chief Executive Steve Rowe's pledge to turn around its ailing clothing division, as well as continued strength in its better-performing food division.

"He is an executive that we are minded to back, one with the commitment, energy and insight to demonstrably take M&S on a better course, something for which long-standing shareholders pine," said Clive Black, head of research at Shore Capital, in a note, retaining a "buy" rating on the stock.

Supermarket Sainsbury also rose, up 2.6 percent after being upgraded to "outperform" from "underperform" by Credit Suisse (LSE: 0QP5.L - news) , saying the food retail sector is a recovery story and that the grocer's bid for Argos-owner Home Retail (Other OTC: HMRLF - news) is "financially and strategically inspired".

Gold (Other OTC: GDCWF - news) miner Randgold Resources was the top gainer on the index, rallying 3.5 percent after a target price hike by Credit Suisse and Dundee Capital. But JP Morgan's rating cut on Glencore (Xetra: A1JAGV - news) and Antofagasta (Other OTC: ANFGF - news) sent the shares down 4.4 percent and 1.4 percent respectively.

Healthcare stocks were also in focus, with AstraZeneca (Swiss: AZN.SW - news) up 1.2 percent, taking gains over the last two sessions to 5.9 percent and hitting its highest level since February earlier in the session.

Pharmaceuticals saw demand on Wednesday after Pfizer pulled out of a deal to buy Allergan (NYSE: AGN - news) , stoking rumours of fresh deal-making in the sector.

Fuelling demand for AstraZeneca on Thursday was an upgrade by Societe Generale (Swiss: 519928.SW - news) , which lifted its target price and maintained a "buy" rating late on Wednesday.

The top faller, however, was Pearson (Xetra: 858266 - news) , down 5.1 percent as it traded without entitlement to its latest dividend payout.

Investors also cited readacross from U.S (Other OTC: UBGXF - news) . peer Apollo Education withdrawing its guidance overnight as weighing on Pearson's shares.

In all, stocks going ex-dividend on the FTSE 100 took around 10 points off the index.

Housebuilder Berkeley Group Holdings dropped 5 percent with traders citing a media report about a decline in London's luxury apartment market.

Worldpay also fell, down 2.2 percent to 276.6p after a top shareholder in the payment processor sold part of its stake for 269p. The stock had traded well over double its 90-day average by 0830 GMT.

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.

If you have any thoughts, suggestions or feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Editing by Catherine Evans)