LONDON (Thomson Financial) - Shares in UK smaller companies were weak in early deals on the first trading session of 2008, bucking a brighter trend among the FTSE 350 stocks which were supported by banking takeover hopes and firm miners, with 2008 press tips the main feature among the small caps.

At 9.16 am, the FTSE Small Cap index was 1.0 points lower at 3,419.3, while the FTSE 100 index was up 36.7 points at 6,493.4.

Although the small cap trend was weaker there were few real features among the fallers.

Shares in Delek Global Real Estate lost 2-1/2 pence at 101 on news Swiss retail and real estate group Jelmoli Holding has begun arbitration proceedings against a DGRE-led consortium after it backed out from Jelmoli's real estate portfolio.

The 3.4 bln sfr transaction was first announced on July 31, 2007, but the purchasers subsequently refused to close the transaction.

In reaction, Panmure Gordon maintained its 'buy' rating on Delek Global, saying that although the proceedings are likely to hang over the stock for some time, the fact the shares are trading at a 60 pct discount to asset value shows there is value in the portfolio.

Elsewhere shares in SCi Entertainment shed 7-1/4 pence to 182-3/4 in early deals this morning in reaction to negative weekend press comment.

The Sunday Times' Inside the City column assessed the prospects for the games publisher and concluded that "for now, Sci is a risk not worth taking".

But on the upside, 2008 press tips created a number of small cap risers.

Shares in AssetCo added 21 pence at 216 after the stock was included in today's Times Tempus column of share selections for 2008.

Meanwhile Proximagen Neuroscience shares took on 10 pence at 130 after being named in the Independent's share portfolio for 2008, published yesterday.

And shares in Faroe Petroleum added 10 pence at 175 after being tagged as one of the Daily Telegraph Questor Column's 'Six of the best stocks to watch for in 2008' today.

Elsewhere, Shares in Infonic pushed 0.625 pence higher to 6.25 amid talk that an upcoming trading statement could please.

The Times' Rumour of the Day column on Saturday said that Infonic -- formerly known as Corpora -- should publish a strong trading statement this month.

Away from the press, Alphameric shares extended their post-Christmas advance, taking on 4 pence at 35 on news that Turf TV, its racing television service venture with 31 UK racecourses has signed a contract with high street bookmaker Ladbrokes.

The contract, which runs for five years, brings to more than 6000 the number of licensed betting offices contracted for Turf TV's full service, the company said.

Also on the up after news today, shares in Minerva firmed 6-1/2 pence at 141 after the property firm said it continues to have promising discussions with the prospective anchor tenant for its Park Place shopping centre development in Croydon.

Shares in Oilex took on 2-1/2 pence at 67-1/2 after the firm revealed it has started drilling at the Sarha-1 exploration well, which is the first of the three wells in the Block 56 Production Sharing Contract Area in the Sultanate of Oman.

And Bateman Litwin shares added 5-1/4 pence at 208 on news a unit has won a 120 mln usd contract for the engineering, procurement and construction of a new storage terminal in Morocco.

The terminal will store and distribute bunker fuel and white products such as fuel oil, diesel, motor gasoline, gas oil and marine diesel. tf.TFN-Europe_newsdesk@thomson.com jmh/slm

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