Tech stocks were still doing well on Tuesday as the falling pound fuelled talk about further takeovers after ARM Holdings PLC (LON:ARM).
Accountancy software firm Sage PLC (LON:SAGE) was 1.27% up at 676.5p and Imagination Technologies PLC (LON:IMG) advanced 5.6% to 216.5p even as UK indices dropped.
Investors also switched on to satellite broadcaster Sky PLC (LON:SKY), up 1.2% at 890.5p.
There has been market talk that sterling weakness could persuade founder and part-owner Rupert Murdoch to swoop for the rest of the shares.
Monday's surprise move by Japan's SoftBank for ARM triggered talk that bargain hunters could snap up other stocks made cheaper by 31-year lows in the pound after the EU vote.
Sterling was down about 1% against the dollar at lunchtime, standing at US$1.31.
The FTSE 100 Index was 13.01 points adrift at 6682.41 and the FTSE 250 backtracked 25.94 points to 16841.72.
Meanwhile, miners lagged as a production update from Rio Tinto PLC (LON:RIO) fuelled fears of a commodity supply glut.
Rio subsided 3.4% to 2378p as growth in iron ore output fell from 13% year-on-year in the first quarter to 8% in the second.
But production growth accelerated in bauxite, aluminium and also copper.
AJ Bell investment director Russ Mould said: "That will do little to ease the market’s fears that key commodities could remain glutted for some time to come as fresh supply continues."
Glencore PLC (LON:GLEN) retreated 3.1% to 180.6p while Anglo American PLC (LON:AAL) fell 2.2% to 813.4p and BHP Billiton PLC (LON:BLT) drifted 2.5% to 952.5p.
UK inflation rose more than expected to 0.5% in June from 0.3% in May, the Office for National Statistics said. Some analysts had expected 0.4%.
The ONS said the rising cost of European flights and higher oil prices were to blame for the increase, rather than the EU referendum, as it came too late to influence the figures.
Meanwhile, there was no let-up in 'Brexit' bad news as a survey from the Engineering Employers Federation showed confidence had tumbled and companies expect trading in the next six months to weaken.
In small-cap world, digital media and technology firm Milestone Group PLC (LON:MSG) ticked up 18.2% to 0.65p on news of a joint venture deal with former footballer Louis Saha's All-Stars.
Medical technology group Collagen Solutions PLC (LON:COS) was 18.2% healthier at 9.75p after a broker report from Hardman & Co.
Synectics PLC (LON:SNX) lifted 12% to 177.5p as the security surveillance technology developer won three contracts worth a total of about £8mln from a Las Vegas gaming operator, bus company Go-Ahead Group PLC (LON:GOG) and another unidentified train company.
But home energy efficiency group Entu (UK) plc (LON:ENTU) was 27.5% off the pace at 39.5p after it warned on full-year profits.
Versarien PLC (LON:VRS) was also in the red with a 6.4% fall to 11p as the advanced engineering materials group blamed tough oil & gas markets for lower revenue and higher losses.
And MX Oil PLC (LON:MXO) slipped 9.8% to 0.93p on news that targeted stabilised production rates had not yet been achieved at block OML113 off the coast of Nigeria.
Preview at 7.33am
FTSE 100 is poised to start lower on Tuesday after closing yesterday 26 points higher at 6,685.
Spreadbetter IG Index is calling the UK benchmark to start around 22 points lower.
It comes after UK stocks were buoyed yesterday as the market was stunned by the mega -takeover deal of Britain's biggest name in the tech sector.
Cambridge based chip designer ARM Holdings plc (LON:ARM), which supplies components for Apple agreed to an eye watering £23.4bn premium takeover offer from Japan's Softbank on Monday.
It sparked talk of many more takeovers coming due to the weaker pound making UK companies a bargain for overseas buyers.
On Wall Street, the Dow closed just 0.09% up and the S&P500 added 0.24%.
In Japan, the Nikkei 225 performed strongly, adding 1.37% to 16,723, but the Shanghai Composite Index lost 0.75%.