LONDON MARKETS: BHP Billiton Climbs In London Trade; FTSE Flat

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- U.K. stocks finished with a minor gain Friday following reports of a confrontation between Russia and Ukraine, but shares of BHP Billiton PLC outperformed the broader market as the mining heavyweight looked to slim down its assets.

The FTSE 100 closed up 3.8 points, or 0.1%, at 6,689.08. For the week, the benchmark rose 1.9%.

The benchmark had been up by as much as 0.8% before news Friday afternoon that Ukrainian forces destroyed part of a Russian military unit that was on Ukrainian soil, according to reports quoting a Ukrainian military spokesperson. The spokesperson said Russian vehicles entered Ukraine through a section of the border held by rebels, which prompted the engagement, according to Bloomberg.

A standout gainer throughout the session was BHP Billiton (BHP) , finishing up 1.2% after the mining company said it's looking at making changes in its product portfolio and that a "demerger of a selection of assets is our preferred option." BHP's board will meet next week.

BHP said it wants to focus on its major iron-ore, copper, coal and petroleum assets, and, potentially, its potash business. That would indicate that assets such as nickel and aluminum may be spun off, and such a move could create a separate company valued at more than $8 billion.

The pound (GBPUSD) gave up most of its gains during the session, trading around late Thursday's level around $1.6688. Sterling had moved up against the dollar earlier Friday after the U.K. Office for National Statistics revised its second-quarter gross domestic product estimate to 3.2% on a year-over-year basis, aided by strength in the construction sector.

The ONS's preliminary growth estimate was 3.1%. Growth for the second quarter from the first quarter was confirmed at 0.8%. The ONS in July said GDP was 0.2% higher than the pre-financial crisis peak in the first quarter of 2008. (Read more about the pound here: http://www.marketwatch.com/story/british-pound-on-track-for-sixth-weekly-drop-2014-08-15.)

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