UPDATE 3-UK Plc shares hail Johnson's storming general election victory

* FTSE 100 up 1.8%, FTSE 250 jumps 4.2%

* Banks and retailers among top risers

* Utilities soar as Corbyn steps down as Labour leader

* National Grid, United Utilities up 5%

* RBS, Lloyds jump more than 10%
(Adds volume statistics)

By Thyagaraju Adinarayan and Julien Ponthus

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

The FTSE 100 index rose 1.8% as a rally in
utilities, retailers, housebuilders and banking stocks offset
the drag from sterling, which surged to 19-month high against
the U.S. dollar.

Housebuilders soared 10% with Taylor Wimpey,
Persimmon and Berkeley all reaching record
highs and topping the blue-chip index.

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

More than a day's average daily volume had gone through on
the FTSE 100 index within the first two hours after
open.

Stocks were benefiting from the Conservative victory and
reports of a preliminary trade deal between China and the U.S.,
said Emmanuel Cau, head of European equity strategy at Barclays.

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

Johnson's poll victory also lifted nationalisation fears
hanging over utility stocks, boosting National Grid and
United Utilities, both of which rose more than 7%.
Opposition Labour leader Jeremy Corbyn had announced plans to
nationalise utilities in his election manifesto.

Corbyn said he on Friday he would step down as Labour leader
. The change in the party's leadership is likely to
be the biggest factor driving banks and utilities higher, by
affirming nationalisation is now "off the table", said Citi
analyst Andrew Coombs.

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

JPMorgan's basket of London-listed companies
that make their cash in domestic markets rose 7% on Friday to
record highs.

"I think there has been a huge 'underweight' on UK assets
and we are seeing it unwind," said Kasper Elmgreen, head of
equities at asset manager Amundi. "UK domestics are attractively
priced and there is more way to go."
($1 = 0.7794 pounds)

(Reporting by Thyagaraju Adinarayan and Julien Ponthus,
additional reporting by Sruthi Shankar; editing by Mike
Harrison)