UPDATE 2-FTSE 100 drops on stronger pound; Melrose top loser

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Melrose top loser on sale of air management unit
* Pound jumps 1% to hit a one-month high
* British footfall at stores jumped 87.8% last week - report
* FTSE 100 down 0.3%, FTSE 250 drops 0.1%

(Updates to close)
By Devik Jain and Shashank Nayar
April 19 (Reuters) - London's FTSE 100 ended lower on
Monday, dragged down by a stronger pound and as weaker oil
prices weighed on energy firms, with Melrose the worst performer
on the index after it decided to sell its air management unit.
The British engineer MRON.L dropped 5.5% after it agreed
to sell its Nortek Air Management business for about 2.62
billion pounds ($3.63 billion) and plans to use the proceeds to
pay down debt, reduce a UK pension deficit and return cash to
shareholders. The blue-chip index .FTSE closed 0.5% lower as the pound
rose 1% to hit a one-month high against the dollar, while
heavyweight energy .FTNMX601010 shares ended 1.23% lower and
were the top losers. O/R
"A pretty quiet trading day with a strong pound and weak oil
stocks leading the blue chip index lower, but it doesn't really
call for a sell-off headline as recovery optimism remains
intact,” said Keith Temperton, equity sales trader at Forte
Securities.
With the FTSE 100 gaining 8.4% year-to-date and Britain's
vaccine rollout continuing to progress, markets will have a
chance to gauge the impact on the economy as employment data,
retail sales, CPI, PPI, and flash April PMIs are all due this
week.
The domestically focused mid-cap FTSE 250 index .FTMC
slipped 0.1% with oil and gas exploration company Energean
ENOG.L being the top loser after its opertating loss
widened. Meanwhile, the number of people heading to shops across
Britain jumped 87.8% last week as non-essential stores reopened
after three months of COVID-19 lockdown, researcher Springboard
said. Retail stocks .FTNMX404010 ended flat. The British outsourcer EQN.L jumped 18.8% after U.S.
private equity firm Siris Capital tabled a 624.3 million pounds
($864.59 million) bid in an all-cash deal. [nL4N2MC1KZ
Homebuilders .FTNMX402020 dropped 0.4% even after property
website Rightmove said advertised prices for homes in Britain
hit a record high after finance minister Rishi Sunak stoked the
market again by extending a tax-cut for home-buyers last month.