* FTSE 100 up 0.4 pct at close
* Blue chip index hits record high
* Miners, South Africa-exposed stocks drop
(Recasts, adds detail and quotes, updates with closing prices)
By Kit Rees
LONDON, Oct 11 Britain's blue-chip equity index
hit an all-time high on Tuesday while the mid-cap index
outperformed European peers as sterling came under renewed
pressure on currency markets, though a fall in commodity-related
The FTSE 100 index closed 0.4 percent lower at
7,070.88 points, having hit a record high of 7,129.83 points
earlier in the session.
The mid-cap FTSE 250 index closed 0.5 percent higher
at 18,073.20 points, near its record intraday high of 18,607.13
points set earlier this month.
Sterling's plunge on fears of a "hard" Brexit has given a
boost to international companies of the FTSE 100 which earn
substantial U.S. dollar revenues and get a currency-related
accounting lift as those dollars are converted to pounds.
"The concern will be that a reversal in fortunes for the
currency could see the gains wiped off as quickly as they
appeared," said Laith Khalaf, senior analyst at Hargeaves
Lansdown. "That may well be the case, though it's hard to see
anything in the foreseeable future that's going to propel the
pound back to its former glory,"
Stocks exposed to South Africa, including Old Mutual
and Mediclinic fell after South African finance
minister Pravin Gordhan was ordered to appear in court over
fraud charges, knocking the rand and weighing on the FTSE 100.
Commodity stocks were another drag, with mining firms
Glencore, BHP Billiton and Rio Tinto
all falling between 1.9 percent to 2.7 percent on weaker metals
and oil prices.
A surge by N Brown helped the FTSE 250
outperform the broader European market. The retailer jumped 16.5
percent after saying that it was on track to meet its full year
"Against the backdrop of a 'challenging' Spring-Summer 2016
for the entire UK apparel and footwear retailing sector, N Brown
Group ... has delivered product sales ahead of the market and
financial results ahead of expectations," Shore Capital Markets
analyst Darren Shirley said.
The FTSE 250's companies are more exposed to the domestic UK
economy, but that index has partly benefited from recent upbeat
data that has led many forecasters to drop predictions that the
British economy will slip into recession this year.
Some analysts also expect the drop in the pound to make
British mid-cap companies cheaper and more attractive for
potential overseas acquirers.
(Reporting by Sudip Kar-Gupta; Editing by Catherine Evans)