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* Bellway jumps on strong surge in annual profit
* Gaming co 888 Holdings drops on weak trading update
* IAG top FTSE 100 loser on Berenberg downgrades
* FTSE 100 up 0.2%, FTSE 250 adds 0.5%
(Updates to close)
By Shashank Nayar and Bansari Mayur Kamdar
Oct 19 (Reuters) - London's FTSE 100 ended higher on
Tuesday, aided by gains in insurers and retail stocks, while
price comparison website Moneysupermarket.com was the top gainer
in the mid-cap index after it agreed to buy cashback business
Quidco.
After falling as much as 0.2%, the blue-chip FTSE 100 index
rebounded to end 0.2% higher with insurers
and retailers leading gains.
British Airways owner IAG was the top loser, down
5.8% after brokerage Berenberg downgraded stock to "hold" from
"buy", cut its price target on the stock to 200 pence from 230.
However, expectations the Bank of England could hike rates
towards the end of this year on rising inflation and supply
chain pressures pushed the pound to its one-month high of
1.3810, limiting gains on the export-oriented FTSE 100 index.
"The more that we see inflation data and put the pressure
back on the central banks, the more pressure that is going to
materialize on the markets as well," said Craig Erlam, senior
market analyst at Oanda.
The FTSE 100 has gained 11.7% so far this year on
accomodative central bank policies and positive corporate
results, although bets of a rate hike have recently weighed on
the index as higher rates could dampen the pace of UK's economic
recovery.
Investors now await key UK inflation data due to be released
on Wednesday for cues on further price pressures.
The domestically focussed mid-cap index advanced
0.5%, with consumer discretionary stocks being among the top
performers.
Shares of British price comparison website
Moneysupermarket.com jumped 8.9% to be the top gainer
in the mid-cap index after it agreed to buy cashback business
Quidco for an initial consideration of 87 million
pounds.
Bellway Plc rose 1.6% after a significant increase
in annual profits and an increase in its target of new homes for
the year ending July 2022.
Online gaming company 888 Holdings dropped 2.1%
after announcing that it expects a negative impact to 2022
EBITDA in its latest trading update.
(Reporting by Shashank Nayar, Bansari Mayur Kamdar and Amal S;
editing by Uttaresh.V, Krishna Chandra Eluri and Emelia
Sithole-Matarise)
