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* Dunelm gains on strong FY results, upbeat 2022 profit
forecast
* Smiths Group gains on ICU Medical deal
* FTSE 100 down 0.7%, FTSE 250 off 0.9%
(Updates to close)
By Devik Jain and Amal S
Sept 8 (Reuters) - London's FTSE 100 slipped for a second
session on Wednesday, dragged by pharmaceutical and bank stocks,
while Dunelm Group jumped to the top of the mid-cap index after
posting upbeat annual results.
The blue-chip FTSE 100 index ended 0.7% down, as
pharmacuetical stocks weighed with drugmakers
AstraZeneca and GlaxoSmithKline among top drags.
Banking shares shed 1.2%, with big lenders
Barclays and Lloyds Banking Group slipping
1.6% and 2%, respectively, after Morgan Stanley cut its price
targets on the stocks.
The FTSE 100 has gained 10% so far this year, but continues
to lag its European and U.S. peers as worries around a spread of
Delta variant of coronavirus and supply chain issues sparked
concerns of a slowdown in economic growth.
"Supply chain issues are putting pressure on companies
around the world, with the UK particularly affected because of
driver shortages," said Russ Mould, investment director at AJ
Bell.
"It is one of the biggest threats to the post-COVID recovery
story and certainly shows no sign of easing as we enter the
final part of 2021."
Halfords Group dropped 1.9% after the bikes and car
parts retailer said disruption in the global supply chain was
impacting its cycling business.
All eyes this week will be on the European Central Bank's
policy meeting, where the central bank is expected to debate
tapering its own stimulus.
The domestically focused mid-cap FTSE 250 index
declined 0.9%, recording its worst session in nearly three
weeks.
Dunelm Group up 12.4% jumped to the top of mid-cap
index after the home furnishing retailer declared a special
dividend and forecast fiscal 2022 profit to be modestly above
analysts' forecasts.
B&M jumped 7% after the discount retailer forecast
first-half profit well above market estimates on Wednesday,
thanks to stronger-than-expected margins at its UK
stores. 12.4
Smiths Group rose 2.9% after the technology company
agreed to sell its medical unit to U.S.-based ICU Medical Inc
for $2.4 billion.
(Reporting by Devik Jain and Amal S in Bengaluru; Editing by
Bernadette Baum)
