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* Homebuilder Persimmon tops FTSE 100 for the week
* Retail stocks gain as retail sales better than expected
* FTSE 100 down 1.4% for the week, FTMC down 0.9%
(Updates to close)
By Muvija M and Ambar Warrick
Aug 21 (Reuters) - The British bluechip index ended lower on
Friday and broader stocks lost for the week amid new concern
over whether Britain could avoid a hard exit from the European
Union by the year-end.
The FTSE 100 index closed 0.2% lower and shed 1.4%
over the week, while the FTSE 250 index inched higher
for the day and lost 0.9% for the week.
Britain and the European Union made scant progress towards a
deal on future ties in talks this week, and their chief
negotiators blamed each other for the stalemate.
Concerns over a hard brexit bought in a new layer of anxiety
for markets already reeling from the impact of the coronavirus.
British stocks have underperformed several of their global
peers this year, with doubts over a recovery intensifying after
the country's economy contracted by a record 20% in the second
quarter.
"It feels like the market is gradually coming to the
realisation that the world is going to have to live with
COVID-19 for longer as countries which have emerged from
lockdown experience localised flare-ups and a general increase
in infections," Russ Mould, investment director at AJ Bell wrote
in a note.
Consumer discretionary stocks were among the few gainers for
the day after data showed British retail sales surged past their
pre-coronavirus level last month, although concerns persisted
over debt levels in the country.
HG Capital rose 8.8% after announcing further
investment in software firms Visma and Sovos.
Oil and gas heavyweight BP PLC was one of the worst
weekly performers on the FTSE 100, pressured by weakness in oil
prices through the week.
Homebuilder Persimmon outperformed its blue-chip
peers for the week with a more than 5% gain after it said it
would reinstate its dividend, making it one of the first
UK-listed companies to bring back a dividend after the initial
shock of the pandemic.
(Reporting by Muvija M in Bengaluru; Editing by Subhranshu Sahu
and Angus MacSwan)
