* FTSE 100 up 0.5 percent at midday
* Energy firms gain on firmer oil prices
* Defensive stocks in focus
By Harpreet Bhal
LONDON, June 16 (Reuters) - Advancing energy firms pushed Britain's top share index up 0.5 percent by midday on Tuesday as oil prices rebounded, while defensive stocks were also in demand on growing caution over the pace of economic recovery.
By 1050 GMT the FTSE 100 was up 21.27 points at 4,347.28 after two days of losses saw it touch a six-week closing low on Monday when it shed 2.6 percent.
The index has surged 25.5 percent since hitting a six-year trough in March, supported by demand for banks, miners and energy stocks, fuelled by the view that a global economic recovery may come sooner than previously thought.
The FTSE is still down 1.9 percent for the year, however, and analysts warn that the recent rally in stock prices may have been overdone and further weakness is likely.
"We haven't really seen a major bout of consolidation since (the lows in March). The time really has come for that to happen," said Mike Lenhoff, chief strategist at Brewin Dolphin Securities.
"You have had the lead from financials and cyclicals. They have done incredibly well and now there is a recognition that perhaps they have done their stuff for the next short while," he said.
After heavy losses on Monday, energy stocks recovered some ground as crude prices stabilised at near $71 per barrel.
Royal Dutch Shell, Tullow Oil and BP added between 0.5 percent and 1.3 percent.
Banks also gained after sharp losses on Monday. Standard Chartered, Royal Bank of Scotland, Barclays and Lloyds Banking Group added 1.1 to 4.8 percent, but heavyweight HSBC slipped by 0.3 percent.
DEFENSIVES SOLID
Defensive pharmaceutical and tobacco stocks were well supported as investors looked to assets perceived as safe bets. GlaxoSmithKline gained 1.3 percent and British American Tobacco climbed 0.7 percent. Vodafone gained 1.5 percent.
Data showing consumer prices in Britain slowed much less than expected in May supported the view that the UK's struggling economy may be supported by rising consumer spending.
The Office for National Statistics said consumer prices rose 0.6 percent on the month in May, taking the annual rate to 2.2 percent from 2.3 percent in April, but above analysts forecasts.
This pushed the pound to its highest level against the euro this year, but stock market reaction was muted.
Miners were still under pressure as metal prices stayed well below peaks since late 2008 set last week.
BHP Billiton , Anglo American and Kazakhmys fell between 1.7 and 2.6 percent as metals prices turned negative.
Rio Tinto lost 1.9 percent after the firm said it expects weak commodity markets to continue to hit its bottom line as it launched a $15.2 billion rights offer, the world's fifth largest share issue.
Tesco gained 1.4 percent after Britain's largest retailer met forecasts to post a 9.7 percent rise in first-quarter UK sales.
BT Group added 4.4 percent after Morgan Stanley upgraded the telecoms stock to "overweight" and increased its price target, while Serco Group was also among the top gainers, up 3.2 percent after UBS upgraded the stock to "buy". (Reporting by Harpreet Bhal; Editing by Hans Peters)