*

FTSE 100 up 0.1%, FTSE 250 up 0.1%

*

UK defence stocks up as Norway picks Britain for frigate

deal

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Kainos jumps on upbeat annual outlook

*

Domino's Pizza rises on new share buyback, reaffirmed

forecast

(Updates after market close)

Sept 1 (Reuters) - London equities closed slightly

higher on Monday, helped by precious metal miners and defence

stocks, but losses in utilities kept gains in check.

The blue-chip FTSE 100 closed 0.1% higher, following

its biggest weekly decline in almost five months on Friday. The

domestically focussed mid-cap index rose 0.1%.

Defence stocks advanced after Norway said it

had chosen Britain as its strategic partner for the acquisition

of new frigates, in a deal worth some 10 billion pounds ($13.51

billion).

BAE Systems rose 1.9%, Babcock advanced

2.1%, while Rolls-Royce gained 2.8%.

Precious metal mining stocks gained 3.3%,

tracking higher gold prices. Hochschild Mining rose

6.7%, Fresnillo and Endeavour Mining ( EDVMF ) added 2.1%

and 3.5%, respectively.

The FTSE 100 hit a record high in August, as global shares

rallied on rising bets on a U.S. rate cut in September, but at

the end of the month registered four straight sessions of

declines.

Heavyweight banking stocks, which fell on

Friday after a think-tank recommended a new tax on lenders as a

possible way for finance minister Rachel Reeves to raise

revenue, rebounded slightly on the day with several analysts

saying the sharp falls last week were overdone.

NatWest ( NWG ) was up 1.2% and Barclays ( BCS ) rose 1.9%.

On the flip side, utility stocks fell, with SSE

down 3.1%, while National Grid and United

Utilities fell 2.1% and 2.5%, respectively.

Personal goods and industrial mining stocks

also declined.

Among corporate updates, IT software developer Kainos

jumped 22.5%, to top the mid-cap index, on an upbeat

annual outlook.

Domino's Pizza Group rose 8.8% on reaffirming its

annual earnings forecast and launching a new share buyback.

A survey showed Britain's manufacturers suffered a fresh

setback in August with new orders dropping due to worries about

trade tensions abroad and tax increases at home.

Meanwhile, a U.S. appeals court ruled on Friday that most of

U.S. President Donald Trump's tariffs are illegal, although it

allowed them to remain in place until mid-October to permit

further appeals.

Trump has vowed to take the case to the Supreme Court and

trade experts say the administration is preparing alternative

plans to be able to proceed with its tariffs.

U.S. markets were closed for a holiday.

(Reporting by Sukriti Gupta; Editing by Mrigank Dhaniwala and

Ros Russell)