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* FTSE 100 up 2 pct
* Opinion polls indicate 'Remain' camp narrowly ahead
* Banks, housebuilders rally
* Circassia Pharmaceuticals drops on failed drug
By Kit Rees
LONDON, June 20 (Reuters) - UK shares paced by banks andhousebuilding rose on Monday, boosted by polls suggesting thecampaign for Britain to remain in the European Union wasregaining a narrow edge over the "Out" camp.
Britain's blue chip FTSE 100 index rose 2 percent to6,138.78 points by 0809 GMT, extending Friday's 1.2 percentgain.
Two opinion polls published on Saturday showed that thecampaign to keep Britain in the European Union ahead of its June23 referendum had regained its lead, while a third poll alsoshowed momentum for an "In" vote.
The overall picture, however, remains one of an evenly splitelectorate.
"The risk-off mood of last week which was fading on Fridayhas turned decisively this morning and ... this (could) extendinto the rest of the week provided that the polls continue topoint towards 'Remain'," Chris Beauchamp, senior market analystat IG, said.
Shares in domestically-focused companies, seen as sensitiveto the outcome of Britain's June 23 referendum on its EUmembership, rallied, with banks Royal Bank of Scotland,Lloyds and Barclays all jumping between 4.6percent and 6.8 percent.
Housebuilders Taylor Wimpey, Barratt Developments, Berkeley Group and Persimmon alsorose, gaining between 4.3 percent to over 6 percent.
Precious metals miners Rangold Resources andFresnillo were the only fallers on the blue chip index,down 2.6 and 0.8 percent respectively as investors dumpedperceived safe-haven assets and the price of gold fell.
Among the mid-caps, however, Circassia Pharmaceuticals plunged over 65 percent after a cat allergy treatmentfailed in a late-stage trial due to a marked placebo effect.
(Reporting by Kit Rees; Editing by Mark Heinrich)