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* Burberry slumps after earnings update
* UK economy grows 0.6% in Sept
* B&M drops on lower earnings
* FTSE 100 up 0.6%, FTSE 250 adds 0.6%
(Updates to close)
By Bansari Mayur Kamdar
Nov 11 (Reuters) - UK's blue-chip index hit fresh 20-month
highs on Thursday as miners bounced on relief that property
developer China Evergrande averted a default, although a slew of
disappointing updates from retailers cast gloom on the sector.
Luxury brand Burberry fell 5.0% after it said sales
flatlined in the second quarter due to bad weather and COVID-19
travel restrictions in China, taking the shine off the fashion
brand's better-than-expected profit.
Discount retailer B&M dropped 5.5% after posting
lower first-half core earnings.
The FTSE 100 index still ended 0.6% higher, helped
by China-exposed mining stocks, after China Evergrande averted a
destabilising default at the last minute for the third time in
the past month. Precious metal miners
added 3.8%.
"Rising commodity prices have helped the FTSE 100 to a new
post-pandemic peak, shrugging off a turn lower for Burberry,"
said Chris Beauchamp, chief market analyst at IG.
Data showed Britain's economy grew by 0.6% in September,
beating estimates and gaining some steam at the end of the third
quarter, but estimates for previous months were revised lower.
"The uptick is because with sluggish growth amid higher
inflation, there are expectations that BoE won't raise rates in
really quick succession," said Susannah Streeter, senior
investment and markets analyst at Hargreaves Lansdown.
In comparison to its European and U.S. peers, the FTSE 100
has underperformed in post-pandemic recovery this year, hurt by
global supply chain problems, surging energy prices, post-Brexit
shortages of labour and inflationary worries.
Oil major BP fell 0.8% after it and Norway's Aker
jointly sold a 5% stake in Norwegian oil firm Aker BP
, cutting their combined holding in the company to
65%.
Johnson Matthey tumbled 18.6% after announcing
plans to exit its battery materials business and the departure
of its chief executive.
Online car marketplace Auto Trader Group Plc was
the top gainer on the FTSE 100, surging 14.3%, after it reported
its highest ever half-year revenue and profit.
(Reporting by Bansari Mayur Kamdar and Amal S in Bengaluru;
Additional reporting by Joice Alves; Editing by Shailesh Kuber
and Andrew Heavens)
Johnson Matthey (JMAT)
Burberry (BRBY)
BP (BP.)
