UPDATE 2-FTSE 100 drops to post worst week since October; reverses 2021 gains

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* Boohoo gains on talks to purchase rival brands
* Insurer Prudential top loser for the week
* EU recommends approval of AstraZeneca vaccine candidate
* FTSE 100 down 1.8%, FTSE 250 falls 0.7%

(Updates to close)
By Shashank Nayar and Amal S
Jan 29 (Reuters) - The FTSE 100 ended lower on Friday and
recorded its worst weekly performance since October, as stalled
vaccine rollouts and lockdowns to curb the spread of contagious
new coronavirus variants kept investors from jumping into
riskier assets.
The blue-chip FTSE 100 index .FTSE dropped 1.8%, with
energy .FTNMX0530 and mining .FTNMX1770 sector being top
drags for the week, while the mid-cap index .FTMC fell 0.7%.
Drugmaker AstraZeneca AZN.L fell 3.7% for the week and was
the third biggest drag to the FTSE 100 on Friday as a tussle
with the European Union on vaccine rollouts weighed on the
stock. However, Europe's medicines regulator recommended approving
the drugmaker's COVID-19 vaccine for people over the age of 18,
the third vaccine to be cleared for use in the European
Union. "Clearly, there have been a few new concerns with the
relationship with the European Union on the vaccine in recent
days and that hurt the markets. It has also led people to take
some profits," said Chris Bailey, a strategist at Raymond James.
The benchmark indexes were set to post a fall for the month,
with the mid-cap index on track to record its worst monthly loss
since September. Both indexes reversed their 2021 gains to trade
lower by nearly 1% for the year.
The internationally focused FTSE 100 has recorded consistent
monthly gains since November, but recently lost steam and
currently trades at a near six-week low, led by worries of
elongated economic pain due to a surge in virus cases and
lockdowns.
Life insurer Prudential PRU.L was the top loser this week,
falling nearly 16% on equity raise and demerger plans, while
major brokerages including Deutsche Bank, UBS and Bank of
America trimmed their target price on the stock.
Online fashion retailer Boohoo BOOH.L gained 1.5% after it
confirmed it was in exclusive talks with the administrators of
Philip Green's collapsed Arcadia group over the purchase of the
Dorothy Perkins, Wallis and Burton brands.