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FTSE 100 down 0.5%, FTSE 250 slips 0.5%

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Drax Group ( DRXGF ) slumps after financial watchdog probe

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PPHE Hotel drops after HY earnings

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IT firm Softcat gains on annual forecast lift

Aug 28 (Reuters) - UK's blue-chip and midcap stocks fell

for a third consecutive session on Thursday, with utilities and

technology shares dragging on the indices, as investors assessed

chip giant Nvidia's ( NVDA ) results.

The blue-chip FTSE 100 and the domestically focussed

midcap index both shed 0.5% by 1030 GMT.

Drax Group ( DRXGF ) led declines on the midcap, falling 9.7%

after Britain's financial watchdog investigated the energy

company's biomass sourcing disclosures.

Other utility stocks were also under pressure,

with Centrica ( CPYYF ), SSE and United Utilities

down between 1.4% and 1.7%.

Technology index shed 1.5%, tracking global

moves, after results of AI bellwether Nvidia ( NVDA ) fell short

of some analysts' expectations.

Precious metal mining stocks dipped 1.7%,

with Hochschild and Endeavour Mining ( EDVMF ) falling

3.2% and 2.3%, respectively.

Among other individual stocks, PPHE Hotel was the

top decliner on the FTSE 250, slumping 13.8% after the

hospitality group posted a half-yearly earnings decline.

Barclays ( BCS ) slipped 1.1% after the British lender

agreed to sell its stake in joint venture Entercard Group to

partner Swedbank AB for approximately 2.6 billion

crowns ($273.2 million).

On the flipside, IT firm Softcat was the top gainer

on the midcap index, adding 3.8% after lifting its annual profit

growth forecast for the third time in six months.

Meanwhile, the Confederation of British Industry said that

services business reported a fall in confidence and activity

this month; the leading employers group called on finance

minister Rachel Reeves to defer from adding more corporate tax

burden.

The UK's blue-chip index had touched a record high last week

when global markets got a lift after U.S. Federal Reserve Chair

Jerome Powell signalled a possible interest rate cut at the

central bank's September meeting.