FTSE retreats from 13-month high as oil stocks weigh

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* FTSE falls after 4 straight days of gains

* Energy shares track weaker oil prices

* Prudential (HKSE: 2378.HK - news) shares gain after results

By Atul Prakash

LONDON, Aug 10 (Reuters) - Britain's top equity index retreated from a 13-month high on Wednesday, with shares in Smith & Nephew (LSE: SN.L - news) falling on a broker downgrade and energy shares losing ground after crude oil prices fell on oversupply concerns.

The UK Oil and Gas index fell 1.1 percent, the top sectoral decliner, after a global supply glut weighed on the energy market and analysts said that talks of a potential producer meeting to discuss propping up prices was unlikely to have any impact on supplies.

Shares (Berlin: DI6.BE - news) in Royal Dutch Shell (Xetra: A0ET6Q - news) , BP and Tullow Oil fell 1.0 to 2.1 percent, pushing the blue-chip FTSE 100 index to trade 0.2 percent lower by 0824 GMT. It had climbed to its highest level since June last year following four straight sessions of gains.

"Lower crude prices are hurting the oil majors and putting pressure on the broader market," Jawaid Afsar, senior trader at Securequity, said.

"Given the recent gains in the FTSE, it would not be too surprising to see a short-term pullback. We have had a good run post-Brexit and a breather could prove to be quite healthy."

Among other sharp movers, Smith & Nephew fell 1.2 percent after Barclays (LSE: BARC.L - news) cut its stance of the stock to "equal weight" from "overweight".

"We believe its transition to higher growth platforms is underappreciated by the market ... However, with results continuing to disappoint and an upcoming management team transition we see a lower probability of upside optionality crystallizing within the next year," Barclays analysts said in a note.

However, insurer Prudential rose 3 percent. Although the company reported a fall in first half profits, it said that it was well placed to capitalise on positive structural trends and emphasised its ability to deliver both growth and cash.

Randgold Resources advanced 1.8 percent after Panmure raised its target price for the stock to 6,892 pence from 6,750 pence and as gold prices rose more than 1 percent on a weaker dollar.

In the mid-cap sector, G4S (Copenhagen: G4S.CO - news) surged more than 15 percent after the world's largest security firm posted an 8.2 percent rise in first-half core earnings, maintained its dividend and said it was making substantial progress in its turnaround plan.

Its shares were headed for their best one-day gain in nearly 15 years.

($1 = 0.7669 pounds) (Reporting by Atul Prakash; Editing by Keith Weir)