UK's FTSE drops away after touching new record high

* FTSE 100 hits new record high before trading lower

* Tullow Oil (LSE: TLW.L - news) slumps, set for FTSE 100 exit

* Intertek up after profits and dividend rise (Adds quotes, details)

By Alistair Smout

LONDON, March 2 (Reuters) - Britain's top equity index briefly touched a new record high on Monday before turning negative as commodity stocks weakened, led lower by a slump in Tullow Oil.

The blue-chip FTSE 100 equity index rose as much as 0.3 percent to a record intraday high of 6,974.26 points, with early gains propelled by mining stocks after China, the world's biggest consumer of metals, cut interest rates over the weekend.

However, the miners tracked copper lower following their initial rise, with analysts saying that the cut raised worries over the state of China's growth.

"While the rate cut would seem be good for the miners, it's a worry that the Chinese central bank feels the need to do this," Alastair McCaig, market analyst at IG (LSE: IGG.L - news) said.

"It's a reflection of the fact that anticipated growth in China could be weaker than previously thought."

The reversal in the mining sector saw the FTSE 100 turn negative after the new high. It was down 9.66 points, or 0.1 percent, at 6,937.00 by 1527 GMT.

Tullow Oil, which fell the most, extended losses in heavy volumes after updating on a dispute over the maritime border between Ghana and Ivory Coast.

Tullow Oil lost over 200 million pounds ($308 million) of its market value because of concerns that a boundary dispute between Ivory Coast and Ghana could delay a project off the coast of west Africa.

Tullow was down 6.8 percent in trading volume of 150 percent of its 90 day average. At current prices, its relegation from the FTSE 100 is set to be confirmed later this week, FTSE said.

"There's news that they're going to be falling out of the FTSE, so there'll be index sellers moving their shares in Tullow," said Zeg Choudhry, managing director of LONTRAD.

Intertek rose 1.6 percent, the best-performing FTSE 100 stock in percentage terms, after the product-testing company posted higher profits and revenues and raised its dividend.

It hit a 3-1/2 month high, marking a recovery of more than 20 percent since its December low.

British Land (LSE: BLND.L - news) was also higher, up 1.9 percent after saying it had bought Surrey Quays leisure park for 135 million pounds ($207.55 million).

"This acquisition should fit snugly into their overall gameplan," IG's McCaig said. ($1 = 0.6504 pounds) (Editing by Tom Heneghan)