By Polya Lesova, MarketWatch

LONDON (MarketWatch) -- London's benchmark stock index edged lower on Friday, weighed down by mining stocks, while shares of technology firm ARM Holdings PLC rallied.

The FTSE 100 index slipped 0.2% to 6,013.54 in morning trading.

ARM Holdings (ARMHY) was the top gainer in the FTSE, rallying 9.3%. The gains followed strong results from U.S. chip giant Intel Corp. (INTC), which reported a surge in fourth-quarter profit. (INTC)

Another big gainer in the benchmark index was medical-device maker Smith & Nephew PLC (SNN). (SNN)It rallied 4.2% in morning trading. The Daily Telegraph newspaper, without citing sources, reported that the U.K. firm will start informal talks with U.S.-based Biomet about a possible 15 billion pound ($23.8 billion) merger.

The news comes after recent reports suggested that health-care giant Johnson & Johnson (JNJ) is interested in Smith & Nephew.

A spokesperson for Smith & Nephew couldn't immediately be reached for comment on Friday.

On the downside, mining stocks weighed on the FTSE, as metal prices traded lower. Copper miner Antofagasta PLC fell 2% and Xstrata PLC slipped 1.4%.

A notable exception was silver miner Fresnillo PLC , which gained nearly 2%. The firm reported record levels of gold and silver production for 2010, and gave an upbeat outlook for output this year.

Shares of aerospace and defense firm Meggitt PLC fell 3% after UBS downgraded the firm to neutral from buy, saying that the outlook is now broadly priced into the share price.