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UPDATE 1-British mid-caps dip as Brexit mood sours

Published 17/10/2019, 09:42
© Reuters.  UPDATE 1-British mid-caps dip as Brexit mood sours
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* FTSE 100 up 0.2%, FTSE 250 down 0.5%

* N. Ireland's DUP says cannot back current Brexit deal

* Grafton tumbles after profit alert, drags peers lower

* Moneysupermarket falls after trading update

(Adds news items, analyst comments, graphic, updates share

prices)

By Shashwat Awasthi

Oct 17 (Reuters) - Britain's FTSE 250 slid on Thursday after

Northern Ireland's Democratic Unionist Party (DUP) cast doubts

on the prospects of a Brexit deal, while shares of building

materials suppliers and homebuilders tumbled after Grafton's

profit alert.

The FTSE 250 .FTMC , up more than 3% since last week amid a

flurry of contrasting Brexit headlines, shed 0.5% as sterling

slipped after the DUP said it could not back the Brexit deal as

it currently stands. The FTSE 100 .FTSE snapped a three-day losing run and

edged 0.2% higher by 0800 GMT, helped by a rebound in oil majors

Shell RDSa.L and BP BP.L after days of sell-off.

Unilever ULVR.L added 1.5% after its quarterly update and,

along with fellow exporter firms, benefited from a weaker pound

to further support the main index.

Mid-cap Grafton GFTU_u.L slid 12%, on track for its worst

day since June 2016, after it warned on its annual profit due to

weak demand in the UK and delays in new construction permits in

the Netherlands. Peers Travis Perkins TPK.L , Howden Joinery HWDN.L and

SIG SHI.L gave up between 2% and 5.4%. Housebuilders such as Barratt BDEV.L , Taylor Wimpey TW.L

and Berkeley BKGH.L fell on a combination of Grafton's warning

and downbeat Brexit sentiment.

"Brexit has moved to the season finale it seems," said

Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.

Britain and the EU seemed to be on the verge of a deal on

Wednesday and European Council President Donald Tusk said that

the basic foundations of the agreement were ready. But, CMC Markets' Michael Hewson warned that progress could

get "a little tricky", as doubts remain over whether or not

British lawmakers will approve the deal at a special

parliamentary session on Saturday.

"Looking at options markets, dealers started adding more

premium on the short side than the long side after the DUP

statement," said Hussein Sayed, chief market strategist at FXTM.

News-driven moves saw Moneysupermarket.com MONY.L tumble

9% to a six-month low after a trading update. Liberum analysts

said its insurance and money divisions underperformed.

Britain's biggest pizza delivery company Domino's DOM.L

jumped nearly 6%, however, on plans to exit its international

markets. Shares of Hargreaves Lansdown HRGV.L fell 3.4% to the

bottom of the blue-chip index. The Financial Times reported that

UK's financial watchdog was examining the firm's role after the

collapse of money manager Neil Woodford's flagship funds.

Share performance of Grafton and peers since 2016 https://tmsnrt.rs/2IX9J7C

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