* FTSE 100 up 0.9%, FTSE 250 0.6% higher
* Bourses gain after steep losses on Monday
* Crest Nicholson leads housebuilders higher
* A.G. Barr jumps on upbeat profit view
* Pound slips as Brexit trade deal worries linger
(Adds news items, analyst comment, updates to closing prices)
By Shashwat Awasthi
Jan 28 (Reuters) - Britain's benchmark stock indexes
rebounded on Tuesday after shedding more than 2% in the previous
session on fears over China's coronavirus outbreak, with shares
of blue-chip exporters firming as the pound slid to a one-week
low.
After suffering its worst day since early October 2019, the
FTSE 100 .FTSE added 0.9%. The FTSE 250 .FTMC rebounded from
its biggest one-day fall in more than a year to gain 0.6%.
An index of leisure and airline stocks .FTNMX5750 clawed
back some losses from its worst day in more than
three-and-a-half years to rise 1.4%. InterContinental Hotels
IHG.L gained 3.1%.
"The fact Hong Kong has slashed border travel with China
could be read as a step in the right direction in regards to
containing the illness," Spreadex analyst Connor Campbell said.
Midcap Irn-Bru maker A.G. Barr BAG.L soared 15.4% on its
best day since October 2005 after it forecast annual profit to
be at the top end of the current market view. Crest Nicholson CRST.L rallied 7% to its highest since May
2018 and spurred on its peers after saying British Prime
Minister Boris Johnson's victory in the general election would
support the sector in the near term. Shares in Unilever ULVR.L , AstraZeneca AZN.L and Reckitt
Benckiser RB.L all climbed 2% as sterling dipped on concerns
about Britain's future relationship with the European Union, and
ahead of a Bank of England meeting this week. GBP/
BUYING THE DIPS
Financial markets have been battered in recent sessions as
the death toll from the virus known as "2019-nCoV" mounted,
leaving China scrambling to impose a string of measures to
contain its spread.
Britain's blue-chip index has lost nearly 1% this month,
while the midcaps have shed over 2%.
Markets.com analyst Neil Wilson suggested the recent slide
in stock markets made for a more attractive entry point into
equities for some investors.
"Buying the dips is alive and well - I would anticipate dips
to be buying opportunities for many in the market," he said.
However, Wilson remained sceptical of the market's ability
to sustain the gains due to limited visibility of the situation
in China and its potential impact.
Among smaller stocks, tourism and insurance firm Saga
SAGA.L advanced 7.6% after saying it was on track to meet its
annual profit outlook, despite a one-off charge related to the
collapse of Thomas Cook last year.