- Barclays slides on full-year profit drop
- Coca-Cola HBC extends gains
- FTSE 100 down 0.1%, FTSE 250 adds 0.2%
Feb 15 (Reuters) - UK's FTSE 100 benchmark index was subdued on Wednesday, as Barclays stocks tanked after reporting lower annual profit, although losses were limited due to a drop in the pound after data showed domestic inflation eased more than expected.
The blue-chip FTSE 100 fell 0.1%, hovering near a record high.
British lender Barclays slid 8.3% to the bottom of the FTSE 100 and was set to post its biggest drop in nearly a year after reporting a 14% slump in full-year profit.
"Barclays has bitterly disappointed the market with its full-year numbers. Profits have been stunted partly because of a big increase in litigation costs relating to the over-issuance of U.S. securities," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
"This costly mistake has been known about for some time, but these are now the hard consequences biting the bottom line."
The FTSE 350 banking index fell 1.9%, on track for its biggest one-day drop in more than two months.
The pound edged lower after data showed British consumer price inflation fell more than expected in January and there were also drops in underlying measures of inflation that are being closely watched by the Bank of England.
"Message from this data point is that inflation seems to be on a downtrend, which is ultimately what the Bank of England wants to achieve," said Julien Lafargue, chief market strategist at Barclays Private Bank.
The FTSE 100 has had a stellar start to the year boosted by upbeat corporate earnings, rising more than 6% so far this year.
The more domestically-focussed FTSE 250 midcap rose 0.2% on Wednesday.
Soft drinks bottler Coca Cola HBC extended Tuesday's gains, rising 2.3% after several brokerages increased their price target on the stock.
Reporting by Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza and Rashmi Aich
Source: Reuters