Takeover bid boosts NEX Group as FTSE 100 slips to weekly loss

By Helen Reid

LONDON (Reuters) - A takeover offer for NEX Group sent its shares shooting up by almost a third on Friday, while the FTSE 100 registered a weekly decline in spite of a boost from energy and financials stocks.

Financial technology company NEX Group (NXGN.L) rose 31 percent after saying it received a preliminary takeover offer from CME (CME.O). Speculation that the offer could trigger a bidding war is likely to support the shares.

"NEX is an important strategic asset and therefore we would not be surprised to see competing interest," said Liberum.

The FTSE 100 (.FTSE) rose 0.3 percent on Friday, leaving it 0.7 percent down on the week.

"The next stage for UK equities does look a little bit more mired, and no matter what happens to the pound, UK stocks could warrant a risk premium as we head into the final (Brexit) negotiations," said Gautam Batra, head of investments at Mediolanum Asset Management.

The FTSE was buoyed by strong financials and energy stocks, but several companies suffered big share price falls after results.

Berkeley Group (BKGH.L) was the biggest FTSE 100 faller, retreating by 5.2 percent after the house builder said that planning constraints meant it could not increase volumes further.

"The shares are looking fairly expensive and standing at the highest premium to fair value in the sector," said Shore Capital analyst Robin Hardy.

"We would, at the very least, still look to be taking profit here and, as with the other larger-cap house builders, reduce weightings."

Berkeley's rivals Taylor Wimpey (TW.L), Barratt Development (BDEV.L) and Persimmon (PSON.L) fell by between 1.3 percent and 1.8 percent.

Outsourcing company Mitie (MTO.L) fell 3 percent after saying it expects a tough year ahead, increasing its estimated costs from a turnaround plan.

M&A news also moved Old Mutual (OML.L). Shares in the Anglo-South African financial services group dipped 1.6 percent after a source said it was selling three businesses in Latin America to China Minsheng Investment Group International for about $300 million.

Shares in pubs group J D Wetherspoon (JDW.L) finished 6.3 percent down after the company said it expects lower sales growth and higher costs in the rest of the year.

TalkTalk (TALK.L) fell 2.2 percent after JP Morgan cut its target price on the stock.

Overall, sentiment has turned more negative on FTSE 100 earnings, with analysts generally downgrading results expectations in recent weeks.

(Reporting by Helen Reid; Editing by David Goodman)