* FTSE 100 up 0.6 pct, mid-caps up 1.3 percent at close
* Grocers drop after Amazon deal
* Tesco also under pressure after sales figures
* Industrials drive mid-caps
(Recasts, adds quote and details, updates prices at close)
By Helen Reid and Kit Rees
LONDON, June 16 Strength in financials and
energy firms supported the FTSE on Friday but the index posted
its widest weekly loss in two months after a week of political
uncertainty and jitters about the resilience of the consumer
engine of the UK economy.
British stocks sold off on Thursday as fears grew around the
squeezed British consumer and the durability of stronger
macroeconomic data which had spurred cyclical sectors higher.
The main FTSE 100 benchmark was up 0.6 percent at
7,463.54 points at its close, while UK mid-caps pulled
out of Thursday's nosedive to gain claw back 1.3 percent.
Competition worries added to the woes of British retailers,
in particular grocers, which sold off after news that U.S. giant
Amazon was to buy U.S. organic supermarket chain Whole
Shares in supermarket retailers Tesco, Sainsbury
and Marks & Spencer all fell between 1.9
percent to almost 5 percent, while Morrison gained 1.1
The latter was seen as somewhat protected against any Amazon
This exacerbated the move in Tesco's shares, which
had reversed course after weak international same store sales
overshadowed the retailer's strongest UK sales growth in seven
Much of the focus this week was on the more domestically
exposed mid-cap companies, with concerns coming to a boiling
point on Thursday when furniture store DFS warned on
profit, triggering a sharp sell-off among consumer-exposed
Investors said valuations among mid-caps, which hit a fresh
record high as recently as two weeks ago, were also putting off
"It's not panic stations, but you can see why there might be
a consolidation," said Ian Williams, head of economics and
strategy at Peel Hunt.
"Mid-caps have held up a lot better than people thought they
would. So although underlying earnings are good and the bottom
up news is good, valuations mean there's not that many more
compelling cheap opportunities," he added.
Uncertainty around UK politics, a week after a shock
general election result, had also generated jitters around
Among sectors, energy stocks lent some support after oil
edged up off its seven-week lows, while wealth manager St
James's Place, paper firm Mondi and support
services firm DCC were the top FTSE gainers.
Driving the mid-cap recovery were industrials firms with
less exposure to the domestic economy, with engineer Cobham
the biggest gainer.
(Editing by Jeremy Gaunt.)