* FTSE slips 0.3 percent
* Miners lower as confidence in demand for metals ebbs
* Banks, pharmaceuticals stocks gain ground * Sainsbury slides after capital raising
By Simon Falush
LONDON, June 17 (Reuters) - Britain's top share index edged lower early on Wednesday, with miners down as confidence in the demand outlook for metals dimmed while Sainsbury slid after it announced plans to raise 445 million pounds.
By 0759 GMT the FTSE 100 was 12.11 points, or 0.3 percent lower at 4,316.46 after creeping 2.56 points higher to close at 4,328.57 in the previous session.
Miners were the biggest drag on the index as metal prices were stuck well below the highs since late last year struck last week as hopes the global economy was set for a sharp rebound faded.
Rio Tinto, Kazakhmys, Eurasian Natural Resources, Anglo American, Lonmin and BHP Billiton fell 1.8-3.5 percent.
The blue-chip index is down 2.7 percent for the year but is still 24.5 percent above a six-year trough set on March 9.
"We seem to be stuck in a negative mode now, and we're well down on levels seen last week," said Peter Dixon, economist at Commerzbank. "Some of the hype on the recovery seems to have faded and we seem to be returning to realism."
Sainsbury was among the heaviest fallers, down 4.5 percent after Britain's third largest grocer said it plans to raise 445 million pounds ($732 million) to accelerate its expansion, as it posted first-quarter sales at the top end of expectations.
The move to place new shares and convertible bonds also dragged on peers WM Morrison and Tesco, which fell 0.9 and 0.2 percent respectively.
Banks were the biggest support to the FTSE as investors continue to favour a sector which has doubled in value since the March trough.
Defensive pharmaceuticals stocks were in positive territory with Shire leading the way, up 2.1 percent on expectations its drug Replagal will benefit from production problems at U.S. rival Genzyme.
This benefits Shire as it makes a rival drug Fabrazyme.
After Tuesday's above-forecast inflation numbers, investors will look to the latest British jobs report and minutes from the Bank of England Monetary Policy Committee's June meeting to provide further clues as to the health of the domestic economy.
Claimant count unemployment due for release at 0830 GMT was forecast to rise 60,000 in May, following a 57,100 increase in April, while the ILO unemployment rate was seen at 7.3 percent, up from 7.1 percent in the previous month.
Finance minister Alistair Darling was set to warn the City to expect an increase in regulation and a crack down on sloppy boardroom practices in the annual Mansion House speech, to be delivered on Wednesday evening, the Financial Times reported.
U.S. May CPI numbers will be the main macro focus later in the session, with a monthly rise of 0.3 percent expected, giving an annual decline of 0.9 percent, after a fall of 0.7 percent in April.
U.S. President Barack Obama will unveil plans on Wednesday for sweeping reform of financial regulation aimed at averting crises like the banking meltdown that has plunged the global economy into recession. (Editing by Dan Lalor)