A European flag is flown in front of The Elizabeth Tower which houses the "Big Ben" bell in the Palace of Westminster, as thousands of protesters gather in Parliament Square as they take part in a March for Europe, through the centre of London on July 2, 2016, to protest against Britain's vote to leave the EU, which has plunged the government into political turmoil and left the country deeply polarised. Protesters from a variety of movements march from Park Lane to Parliament Square to show solidarity with those looking to create a more positive, inclusive kinder Britain in Europe. / AFP PHOTO
LONDON: Britain's blue-chip share index fell on Wednesday, with a sharp sell-off in retail and property-related stocks outpacing a rally in precious metals miners after prices of safe-haven gold hit a two-year peak.
The FTSE 100 fell 0.5 percent by 0846 GMT. The internationally-exposed FTSE 100 has partially recovered following a post-Brexit slump and is up about 4 percent since June 23 - the date of the EU referendum.
However, it is down about 10 percent in dollar terms as the slump in the sterling to a 31-year low has reduced the dollar value of the market.
In contrast, Britain's domestically-focused, mid-cap FTSE 250 share index fell 1.1 percent, underperforming the blue-chip index, with property and banking stocks falling heavily on concerns about the country's economic outlook after the vote to leave the European Union.
The mid-cap index has fallen more than 10 percent since June 23 in sterling terms.
"The FTSE 100 is doing its best to keep the post-Brexit recovery alive in spite of the understandable uncertainty that has arisen following the referendum," said Mike van Dulken, head of research at Accendo Markets. "Defensives and safe havens have certainly lived up to their name."
Gold miner Randgold Resources rose 4 percent to a new record high, while Fresnillo gained 4.3 percent to the highest level since late 2012.
Utilities stocks, generally seen as defensive plays, were also in demand, with United Utilities, Severn Trent , SSE and National Grid gaining 1.5 to 2.4 percent.
However, UK retailers slipped following a negative sector note from HSBC, with shares in Tesco and Morrisons falling 5 percent and 3.7 percent respectively.
"We expect that Tesco has lost a lot of its buying power and position over recent years due to mismanagement," HSBC analysts said. "We downgrade (it) to 'hold' from 'buy' as short-term sentiment would be against the sector."
Property-related companies came under further selling pressure as shares in Barratt Development, Taylor Wimpey and British Land fell 2.4 to 3.5 percent on lingering concerns about the sector's growth outlook.
Shares in mid-cap companies Redrow, Bovis Homes and Zoopla Property fell 3.5 to 4.1 percent. Domestic banks Metro Bank and Shawbrook were down 7 percent and 3.6 percent respectively due to concerns over Brexit. - Reuters
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