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UPDATE 2-FTSE feels IHG's pain amid caution ahead of Brexit vote

Published 10/19/2019, 12:30 AM
UPDATE 2-FTSE feels IHG's pain amid caution ahead of Brexit vote
UK100
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IHG
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NWG
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DANO
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DGE
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ULVR
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RCOP
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MAR
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FTMC
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FTNMX402020
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STOXX
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EHGE
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AVST
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* FTSE 100 down 0.4%, FTSE 250 flat
* Saturday's Brexit deal vote seen as pivotal
* IHG slips after quarterly revenue drops
* Avast gains after results
* Elegant Hotels hits 3-yr high on Marriott bid

(Adds analyst comments, updates to closing prices)
By Shashwat Awasthi
Oct 18 (Reuters) - London-listed stocks ended a mixed week
on a cautious note ahead of a make-or-break parliamentary vote
on Brexit, while InterContinental Hotels IHG.L and oil stocks
weighed on the FTSE 100 .FTSE , which closed 0.4% lower.
InterContinental shares fell 4.6% on Friday after the
Holiday Inn owner said lower business bookings in China and
protests in Hong Kong had caused a drop in revenue. UK-focussed mid-caps .FTMC outperformed the blue-chip
index and the European benchmark .STOXX , which was dragged
lower by a sharp fall in French carmaker Renault.
The FTSE 250's constituents earn most of their revenue in
Britain and the index has risen more than 4% since last week as
the prospects of a damaging "no-deal" Brexit have diminished.
"The bullish mood ... on the build up to the (Brexit) deal
being brokered and announced, has now been replaced with a more
cautious outlook," CMC Markets' David Madden said.
Traders eyed a vote on the new Brexit accord between
Brussels and London, although analysts warned that progress made
so far could be undone if lawmakers vote down the deal.
"It's a recipe for investors to execute only the most
necessary moves in advance, before a possible 'manic Monday' in
Saturday's wake," said City Index analyst Ken Odeluga.
Paul O'Connor, head of the UK-based Multi-Asset Team at
Janus Henderson, said markets will be very sensitive to the
margin of victory if the deal is approved in Parliament.
"A big Tory win would probably boost UK assets... A narrow
Conservative win could unsettle investors," O'Connor said.
Outperforming the main index were some Brexit-sensitive
stocks, including banks such as RBS RBS.L and housebuilders
.FTNMX3720 , which saw volatile trading through the week.
Shares in consumer goods giants Unilever ULVR.L and Diageo
DGE.L lost about 1% each after downbeat earnings and forecast
from their respective French peers Danone DANO.PA and Remy
Cointreau RCOP.PA and as sterling held steady.
Cybersecurity firm Avast AVST.L shone among mid-caps,
jumping nearly 9% after its results.
Elegant Hotels EHGE.L , which operates hotels and
restaurants in Barbados, soared 57% to 110 pence, the price per
share offered by Marriott MAR.O to buy the AIM-listed company.

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