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UPDATE 2-FTSE rallies for seventh day in a row as pound slips

Published 12/20/2019, 01:51 AM
UPDATE 2-FTSE rallies for seventh day in a row as pound slips

* FTSE 100 up 0.4%, FTSE 250 flat
* Brexit vote eyed on Friday
* BoE meeting lacks surprises
* Just Eat see-saws after bidders raise offers
* TUI, Capita drop on brokerage actions

(Adds news items, analyst comment, closing prices)
By Shashwat Awasthi and Yadarisa Shabong
Dec 19 (Reuters) - London's exporter-heavy FTSE 100 hit a
more than four-month high on Thursday partly in response to a
weaker pound, which came under pressure from fears Britain may
leave the European Union without a trade deal at the end of
2020.
The FTSE 100 .FTSE was up by 0.4%, rising for the seventh
straight session. Its gains have been supported by a
breakthrough on a U.S.-China trade deal and a landslide victory
for Prime Minister Boris Johnson in the British national
election.
The euphoria around Boris Johnson's win carried into this
week but was soon overshadowed by fears of a chaotic Brexit
after the government set a hard deadline of December 2020 to
reach a new trade deal with the European Union.
That pushed sterling to two-week lows, helping blue-chip
companies with a big international presence, such as Unilever
ULVR.L and AstraZeneca AZN.L , rise. The midcap index .FTSE
ended relatively flat after hitting all-time highs earlier this
week.
A Bank of England meeting failed to deliver any surprises,
leaving traders to look ahead to a parliamentary vote on
Johnson's Brexit deal on Friday.
"Now that the dust has settled from the UK general election,
and the U.S.-China trade deal, dealers don't know which way to
look," CMC Markets analyst David Madden said.
"Between now and Christmas there isn't much on the horizon
in terms of macroeconomic news, so it is possible that equity
benchmarks will continue to trade sideways."
It was a quiet day on the corporate news front but Just Eat
JE.L shares saw some action, ending 1.2% higher after Prosus
NV PRX.AS and Takeaway.com TKWY.AS served up their final
offers for the British online food delivery group. The Amsterdam-listed companies increased their bids, with
Prosus offering 800 pence a share and Takeaway.com raising its
all-share offer which values Just Eat at 916 pence per share
based on its closing price on Wednesday.
Just Eat fell sharply after Prosus' announcement, before
recovering to trade higher and touch a near one-and-half year
high following Takeaway.com's revised offer.
Changes to stock ratings drove some moves, with blue-chip
tour operator TUI TUIT.L dipping 3% after Berenberg cut its
rating on the stock. Mid-cap outsourcing group Capita CPI.L
dropped 5% on a Deutsche Bank rating downgrade.
NMC Health NMC.L dropped another 11%, adding to a more
than 30% decline since Tuesday when Muddy Waters disclosed a
short position in the healthcare company.

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