UPDATE 1-Takeover bid boosts NEX Group as FTSE 100 slips to weekly loss

Fri, 16th Mar 2018 16:47

* FTSE 100 up 0.3 pct

* Takeover offer lifts NEX Group by 31 pct

* Berkeley falls after results

* Energy and financials stocks buoy market

* FTSE registers weekly loss(Closing prices)

By Helen Reid

LONDON, March 16 (Reuters) - A takeover offer for NEX Groupsent its shares shooting up by almost a third on Friday, whilethe FTSE 100 registered a weekly decline in spite of a boostfrom energy and financials stocks.

Financial technology company NEX Group rose 31percent after saying it received a preliminary takeover offerfrom CME. Speculation that the offer could trigger abidding war is likely to support the shares.

"NEX is an important strategic asset and therefore we wouldnot be surprised to see competing interest," said Liberum.

The FTSE 100 rose 0.3 percent on Friday, leaving it0.7 percent down on the week.

"The next stage for UK equities does look a little bit moremired, and no matter what happens to the pound, UK stocks couldwarrant a risk premium as we head into the final (Brexit)negotiations," said Gautam Batra, head of investments atMediolanum Asset Management.

The FTSE was buoyed by strong financials and energy stocks,but several companies suffered big share price falls afterresults.

Berkeley Group was the biggest FTSE 100 faller,retreating by 5.2 percent after the house builder said thatplanning constraints meant it could not increase volumesfurther.

"The shares are looking fairly expensive and standing at thehighest premium to fair value in the sector," said Shore Capitalanalyst Robin Hardy.

"We would, at the very least, still look to be taking profithere and, as with the other larger-cap house builders, reduceweightings."

Berkeley's rivals Taylor Wimpey, Barratt Developmentand Persimmon fell by between 1.3 percent and1.8 percent.

Outsourcing company Mitie fell 3 percent aftersaying it expects a tough year ahead, increasing its estimatedcosts from a turnaround plan.

M&A news also moved Old Mutual. Shares in theAnglo-South African financial services group dipped 1.6 percentafter a source said it was selling three businesses in LatinAmerica to China Minsheng Investment Group International forabout $300 million.

Shares in pubs group J D Wetherspoon finished 6.3percent down after the company said it expects lower salesgrowth and higher costs in the rest of the year.

TalkTalk fell 2.2 percent after JP Morgan cut itstarget price on the stock.

Overall, sentiment has turned more negative on FTSE 100earnings, with analysts generally downgrading resultsexpectations in recent weeks.

(Reporting by Helen ReidEditing by David Goodman)