Draghi pledge of continued support helps stabilise FTSE

* FTSE 100 down 0.2 pct; fell some 2 pct at start of week

* Fresnillo (Other OTC: FNLPF - news) gains on bullish UBS (NYSEArca: FBGX - news) comment

* Vodafone buoyed by more takeover talk

* RBS (LSE: RBS.L - news) falls after Citizens IPO priced below expectations

By Tricia Wright

LONDON, Sept 24 (Reuters) - Britain's top share index steadied on Wednesday after recent hefty falls, underpinned by supportive comments from European Central Bank chief Mario Draghi and solid gains from index heavyweight Vodafone.

Helping stabilise the market, Draghi said euro zone monetary policy would remain accommodative for a long period and that the goal was to push up inflation from near zero towards the ECB's target of just below 2 percent.

Data showing German business sentiment dropped for a fifth straight month in September dragged on sentiment, but after a difficult start to the week which saw the FTSE 100 fall more than 2 percent, traders reckoned the worst was over.

"I think the downside will be fairly limited. Most of the selling pressure's probably out of the way now," said TJM Partners (Other OTC: PGPHF - news) ' head of trading, Manoj Ladwa.

Vodafone was among notable risers, ahead 1.5 percent, with traders citing more takeover speculation around the mobile operator. Trading volume in the stock was solid, at almost a third of the 90-day daily average, against a fifth for the broader FTSE 100.

Silver and gold miner Fresnillo topped the blue-chip leader board, up 2.7 percent, after UBS added it to its 'most preferred' list. It cited the recent acquisition of Newmont Mining Corp's 44 percent stake in Mexican gold mining joint venture Penmont as a small medium-term positive.

"After recent share price weakness we see attractive long term value in Fresnillo and are attracted to its low cost assets, production growth, high return projects, exploration upside and conservative management," UBS analysts said.

Shares (Berlin: DI6.BE - news) in Royal Bank of Scotland, meanwhile, shed 1.4 percent. The initial public offering of its U.S. retail business Citizens (NYSE: CIA - news) was priced at $21.50 per share, below the $23-$25 range.

The FTSE 100 was down 12.64 points, or 0.2 percent, at 6,663.44 points by 0835 GMT. It is now more than 3 percent below this month's 14 1/2-year high of 6,904.86.

Profit warnings and share-price slides at retailer Tesco and sweetener maker Tate & Lyle (LSE: TATE.L - news) this week, and more poor economic data from the euro zone, Britain's biggest trading partner, have put investors on edge.

That has left the UK benchmark looking "oversold" on its 14-day Relative Strength Index, a technical momentum indicator. Some traders were looking to buy back into the market around these levels.

"We are actually buyers of UK equity at these levels. The FTSE has fallen slightly more than we expected so will be looking to pick up some bargains," said Mark Ward, head of trading at Sanlam Securities.

Among the top fallers were stocks trading without the attraction of their latest dividend, namely Old Mutual (Other OTC: ODMTY - news) and Centrica (LSE: CNA.L - news) . (Editing by Catherine Evans)