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Pin to quick picksWPP Share News (WPP)

Share Price Information for WPP (WPP)

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Share Price: 831.20
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Britain's FTSE gains, on track for best week since July

Fri, 09th Dec 2016 11:14

* FTSE 100 up 0.1 pct

* Index set for weekly rise of 3.1 pct

* Health care and consumer staples power gains

* Rally in bank stocks falters (ADVISORY- Follow European and UK stock markets in real time onthe Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

By Peter Hobson

LONDON, Dec 9 (Reuters) - Britain's top share index roseslightly on Friday, putting it on track for its best week sinceJuly, led by shares in health care and consumer staplescompanies, but a rally in bank stocks faltered.

The blue chip FTSE 100 index was up 0.1 percent at1038 GMT, taking its gains for the week to more than 3 percent.

The week-long rally has been driven by financial stocks,which rose across Europe after the "No" result in Italy'sconstitutional referendum inflicted less damage than thought,and after the European Central Bank extended its stimulusprogramme.

The UK banking index has gained 7.6 percentthis week, on track for its best week since April and onlyslightly lagging the 9.1 percent surge in the wider Europeanbanking index.

But the rally appeared to be running out of steam, withshares in Barclays, Lloyds Banking Group andPrudential down between 1.7 and 2.6 percent.

A decision by Britain's financial watchdog to delay itsfinal verdict on setting a deadline for consumers to claimcompensation for being mis-sold debt repayment insurance alsoput pressure on banks.

After large gains for banks in recent days, "it's notsurprising to see a bit of weakness creeping in," said ChrisBeauchamp, chief market analyst at traders IG.

Shares in "defensive" stocks with steadier incomes anddividends rose, keeping the index in positive territory.

Pharmaceutical companies GlaxoSmithKline, Shire and AstraZeneca were up by between 1.1 and 1.8percent, while producers of consumer staples such as BritishAmerican Tobacco, Imperial Brands and Unilever gained between 0.6 and 0.9 percent.

Rising gold prices boosted precious metals miners Fresnillo and Rangold Resources by 2.9 and 1.6 percentrespectively.

Shares in outsourcing company Capita slumped early by asmuch as 11 percent taking its losses since issuing a profitwarning on Thursday to more than 20 percent.

The warning was the second in three months by Capita, whichblames Brexit-related client indecision for weaker orders. Itsaid it would sell assets and trim costs to protect its balancesheet.

But Barclays bank said Capita was "selling the wrong bit"and a recovery wouldn't come quickly.

"A near term re-rating is unlikely until growth stabilisesand the strategic fog clears - but neither is likely for another6-months in our view," Barclays analysts said.

Capita's shares later trimmed losses to just over 2 percent.

Rival outsourcer Mitie, which also issued a secondprofit warning in November, fell 2.6 percent.

A plan by Daily Mail and General Trust to cut its stake inEuromoney, publisher of the Euromoney magazine, to about 49percent from about 67 percent to improve its investmentportfolio and lower its debt hit both stocks.

Euromoney slipped 6.8 percent, while shares in Daily Mailand General Trust were down 1.3 percent.

(Reporting by Peter Hobson Editing by Jeremy Gaunt)

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*

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