FTSE steadies near 3-week low before BoE decision, Hikma sinks

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* FTSE 100 steady in morning trade

* Focus on BoE's rate decision

* Hikma slumps after update

By Atul Prakash

LONDON, Aug 4 (Reuters) - Britain's top share index steadied before a likely move by the Bank of England to cut rates on Thursday, although drugmaker Hikma and precious metals miner Randgold Resources slumped after their poor updates.

The blue-chip FTSE 100 index was flat in percentage terms at 6,635.50 points by 0833 GMT after setting a new three-week low of 6,615.83 earlier in the day.

Investors keenly awaited the Bank of England's likely move later in the day to cut interest rates for the first time since 2009, as Britain's economy teeters on the brink of recession after June's Brexit vote.

"The BoE is expected to cut the bank rate by at least 25 basis points and to revise the economic forecasts significantly lower following Britain's decision to leave the European Union," Ipek Ozkardeskaya, senior analyst at London Capital Group said.

"Of course BoE Governor Mark Carney will remind that a monetary easing will not be enough to solve the problems the UK may be facing ahead. The Brexit is a major political issue, which will result in a sizeable structural change, hence the fiscal side of the play will be as important, if not more."

Some companies suffered heavily after their updates.

Hikma, down 14.5 percent and heading for its worst one-day percentage drop in 8 years, led the market lower after saying that its full-year core operating profit from its generics unit would be hurt by delayed approvals of new products and higher-than-expected costs.

Randgold Resources, down 11.3 percent, also featured among the top decliners after it said its second-quarter profit from mining was flat as higher gold prices were offset by lower production and increased costs.

"Randgold described Q2 2016 as one of the toughest quarters it has suffered 'in years', with results hit by a 46-day outage at one of Tongon's two milling circuits and throughput, recovery and dilution challenges at Kibali owing to this mine's continuing transition to a mixed-ore feed," Shore Capital analyst Yuen Low said in note.

"These disappointments more than offset outperformance at Loulo-Gounkoto. Importantly, however, Randgold expects a better H2 2016, which it believes should 'boost its 2016 results to within its market guidance'," Low said.

Some companies gained on the back of strong results.

Aviva (Other OTC: AIVAF - news) was up 4.8 percent after the insurer boosted profits and cash generation in the first half of the year despite a challenging market backdrop, enabling it to raise its interim dividend.

Mid-cap company Serco Group surged nearly 12 percent after the British outsourcing firm raised its 2016 profit forecast for the second time this year and said Britain's vote to leave the European Union could bring opportunities as well as costs. (Reporting by Atul Prakash; Editing by Raissa Kasolowsky)