UPDATE 1-UK Plc shares skyrocket on Johnson's sweeping win

* FTSE 100 up 1%, FTSE 250 jumps 4.2%

* Utilities, banks and retailers top risers

* Utility sector soars as Corbyn steps down as Labour leader

* National Grid, United Utilities up 5%

* RBS, Lloyds jump more than 10%
(Updates stock prices)

By Thyagaraju Adinarayan and Julien Ponthus

LONDON, Dec 13 (Reuters) - UK shares with heavy exposure to
the domestic economy surged on Friday after Prime Minister Boris
Johnson's Conservative Party won a sweeping majority, assuring
markets that Britain is likely to be heading for an orderly exit
from the European Union.

The export-heavy FTSE 100 index rose 1% as negative
impact from strong sterling was offset by a rally in utilities,
retailers, housebuilders and banking stocks. The British pound
surged to 19-month high versus the dollar.

The FTSE 250 index, which is home to many companies
with high UK revenue exposure, surged as much as 5.2%, hitting
fresh record highs.

Emmanuel Cau, head of European equity strategy, said UK
stocks were benefiting from a bullish cocktail mix of Boris
Johnson's electoral victory and a preliminary trade deal between
China and the U.S.

"The banking sector, real estate, construction, utilities,
all these sectors are expected to benefit from the 'feel-good'
factor".

Johnson's win also removed re-nationalistion fears from
utility stocks, boosting National Grid and United
Utilities, both rising more than 5%. Labour leader Jeremy
Corbyn had announced plans to renationalise utility companies in
his election manifesto.

Citi analyst Andrew Coombs said the change in Labour party
leadership is likely to be the biggest factor driving banks and
utilities higher as a change in party leadership should
re-affirm that nationalisation plans are now "off the table".

Among financials, RBS, Virgin Money and
Lloyds stood out rising 10% to 16%.

JPMorgan's basket of London-listed companies
that make their cash at home has enjoyed a meteoric rally,
rising 7% to all-time highs.

A stronger sterling however dented British exporters in the
consumer staples and pharmaceutical sectors with GlaxoSmithKline
, Astrazeneca and Reckitt Benckiser
falling 1.5% to 2%.
(Reporting by Thyagaraju Adinarayan and Julien Ponthus,
additional reporting by Sruthi Shankar)