STOCKS NEWS EUROPE-UK small caps underperform blue-chips

The FTSE small cap index falls 0.4 percent, underperforming a 0.7 percent stronger junior-listed AIM share index and a 0.2 percent fall in the blue chips index.

Shares in Dialight (LSE: DIA.L - news) drop 2 percent after the lighting products maker said its full-year pretax profit fell to 11.2 million pounds ($18.69 million)from 19.8 million pounds a year ago. The update prompts Canaccord Genuity to cut its target price for the stock to 1,000 pence from 1,150 pence.

Oil explorer Gulf Keystone (LSE: GKP.L - news) gains 4.1 percent after saying it expects to move to the main stock list from the AIM on March 24.

($1 = 0.5993 British pounds)

Reuters messaging rm://atul.prakash.thomsonreuters.com@reuters.net