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* FTSE 100 up 0.2%, FTSE 250 up 0.4%
* PM Johnson asks EU for another extension
* Just Eat among biggest FTSE 100 losers
* Smith+Nephew down after CEO departure
(Updates with closing prices, adds analyst comments)
By Muvija M
Oct 21 (Reuters) - UK midcaps closed the session with modest
gains on Monday on hopes that a no-deal Brexit will be avoided,
even though uncertainties persisted as lawmakers forced Prime
Minister Boris Johnson to seek another extension from the
European Union.
The domestically focused FTSE 250 added 0.4% on
Monday, while the exporter-heavy FTSE 100 edged 0.2%
higher, lagging its European counterpart as the pound
strengthened.
A 9% plunge in medical device maker Smith+Nephew
after its CEO departed also capped gains.
In a parliamentary showdown on Saturday, lawmakers voted in
favour of an amendment exposing an unwilling Johnson to having
to ask the European Union for a delay to the Brexit deadline and
withheld support for the last-minute divorce deal.
Along with the extension request, Johnson sent another
letter to the EU laying out reasons why the exit should not be
delayed, sending conflicting messages to the bloc.
Markets, however, looked past the political chaos to the
fact that an extension to Brexit meant any near-term risk of a
disruptive no-deal departure will be eliminated.
As a result, companies considered most vulnerable to any hit
to the UK economy advanced. Banking group Lloyds,
housebuilder Taylor Wimpey and Royal Bank of Scotland
added between 2% and 2.2%.
MIDCAPS OUTPERFORM
The FTSE 250 has gained nearly 4% over the last two weeks,
handily outperforming blue chips, as investors had bet that a
long drawn out Brexit process could be nearing its end as
Johnson chased a withdrawal agreement with the EU.
Elsewhere Prudential jumped 6% to top the FTSE 100
leaderboard as the M&G business demerger became effective. M&G
fell slightly on its first day of trading.
Smith+Nephew suffered its biggest loss in over a decade
after it said Chief Executive Officer Namal Nawana would step
down after just 17 months in the role.
Another steep faller on the main index was Just Eat,
which skidded 6% to a four-month low as investors focused on the
takeaway group's comments about a structural shift in Britain
over a sharp rise in third-quarter revenue.
Miners meanwhile were the second-biggest
support to the FTSE 100, tracking a rise in copper prices as
protests in major producer Chile fuelled concern about supplies
and on signs of improvement in U.S.-China trade relations.
"A perceived easing of U.S.-China trade tensions and the
risk of a no-deal Brexit has supported risk assets since early
October," BlackRock analysts wrote in their weekly note.
"Yet we expect more twists and turns in coming months, and
see geopolitical risks staying elevated in the longer term."
Among midcaps, Capital & Counties Properties leapt
8.3% after luxury property developer Nicholas Candy's investment
arm said it was in early talks for a possible cash offer for the
property manager.
(Reporting by Muvija M and Shashwat Awasthi in Bengaluru
Editing by Arun Koyyur and David Holmes)
