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FTSE 100 down 0.1%, FTSE 250 down 0.4%
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Mondi ( MNODF ) slumps to 12-year low after quarterly results
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Aston Martin down after annual loss warning
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Energy stocks gain on rising oil prices
By Purvi Agarwal
Oct 6 (Reuters) - London's benchmark FTSE 100 slipped on
Monday as investors took a breather after last week's rally that
pushed the index to record highs, while declines in shares of
packaging company Mondi ( MNODF ) after its quarterly results also
weighed.
The blue-chip index briefly crossed 9,500 for the
first time on Monday, its fifth consecutive session of record
highs, before reversing course. It was last down 0.1% at
9,482.86 points.
The industrials sector fell 3.9%. Mondi ( MNODF )
slumped 15.4%, hitting a 12-year low, after the
packaging company said growth in its core profit slowed for the
third-quarter on weak demand and lower prices.
Investors across the UK and European Union were also
spooked by the unexpected
resignation
of France's new prime minister Sebastian Lecornu and his
government on Monday, hours after he announced his cabinet
line-up. This made the government the shortest-lived in modern
French history.
British banks lost 0.6%.
"The fact that the French Prime Minister has resigned adds
to concerns around political and fiscal stability and more
broadly in the UK and Europe," said Fiona Cincotta, senior
market analyst at City Index.
"We often see the nerves surrounding the fiscal outlook
reflected in banking stocks."
Meanwhile, Citigroup double downgraded UK equities to
"underweight" from "overweight. It said that the market's
exposure to defensive sectors such as consumer staples and
utilities made it less attractive in an environment increasingly
favouring cyclical and growth-oriented plays.
On the flip side, energy stocks gained 1.4%,
tracking a rise in crude prices.
Healthcare stocks were up 0.1%. The sector
had boosted the FTSE 100 last week, logging their best weekly
showing since October 2008. The beaten-down sector saw investor
interest after a deal between U.S. administration and drug giant
Pfizer reduced some uncertainty around the sector.
Among other stocks, Aston Martin declined 6.5% after
the luxury carmaker warned of a deepening annual loss due to
weaker-than-expected demand in North America and Asia Pacific
and the impact of U.S. tariffs.
It weighed heavily on the mid-cap index that shed
0.4% on Monday after logging its biggest weekly gain in two
months on Friday.