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Britain's FTSE retreats as pharma stocks fall

Thu, 25th Aug 2016 15:44

* FTSE 100 down 0.3 pct

* Pharma stocks down after Clinton's EpiPen comments

* Glencore leads miners lower

* CRH rises after results (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 Kit Rees and Alistair Smout

LONDON, Aug 25 (Reuters) - UK shares fell on Thursday,extending losses from the previous session as healthcare stocksdropped, though CRH rose after well-received results.

The blue-chip FTSE 100 index was down 0.3 percent at6,816.90 points by the close. It outperformed European peers,benefitting from sterling weakness against the euro.

Healthcare stocks were a major weight on the FTSE 100, withHikma, Shire and Astrazeneca fallingbetween 1.4 percent to 3.5 percent.

That mirrored losses on Wall Street made on Wednesday afterDemocratic presidential nominee Hillary Clinton called for alower price for Mylan NV's allergy drug EpiPen, whichhas become four times more expensive in the past decade.

"(This) ... serves to strike fear into the hearts ofhealthcare groups and their investors everywhere," Mike vanDulken, head of research at Accendo Markets, said in a note.

"The industry (is) ... treading the fine line betweenbalancing the costs of clinical success (and failure) with theeconomic laws of supply and demand."

A weak copper price, which remained near a two-month low,weighed on the mining sector which was down 0.9percent.

Glencore fell 2.6 percent, extending losses fromthe previous session when it posted a drop in first halfearnings.

Among the top risers, construction firm CRH gained2.9 percent after well-received results, hiking its dividend forthe first time in seven years.

CRH was the most heavily traded stock on the FTSE 100,attracting nearly twice its 90 day average volume. The FTSE 100as a whole saw just 70 percent of its daily average trade.

Advertising group WPP extended its rally from theprevious session, up 1.3 percent after a spate of broker pricetarget upgrades on the stock following results on Wednesday.

"We think WPP should be a core holding for long-terminvestors," analysts at Barclays said in a note.

Outside the blue-chips, gambling technology company Playtech hit a record high earlier in the session, rising 3.2percent. It announced a special dividend after reporting an 18percent jump in first-half revenue.

Greg Johnson, analyst at Shore Capital Markets, said in anote that the stock was very cheap for the strong revenue growthit delivered.

Carillion dropped 4.9 percent, away from a five month highhit in the previous session following its results, after it wasdowngraded to "underweight" from "neutral" by JP Morgan.

Food delivery firm Just Eat also suffered from adowngrade, falling 4.1 percent after being cut to "equal weight"from "overweight" by Barclays.

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