UK stocks decline as homebuilders, travel shares drag

London stocks lagged on Thursday, dragged by declines in homebuilders, and travel and leisure stocks, though losses were limited by gains in the energy sector.

London stocks lagged on Thursday, dragged by declines in homebuilders, and travel and leisure stocks, though losses were limited by gains in the energy sector. Both the FTSE 100 and the FTSE 250 fell 0.6% by 0854 GMT.

Shares of 888 Holdings tumbled 16.5% after the bookmaker forecast annual core profit below its prior expectations after flagging a 10% decline in third-quarter revenue. The broader travel and leisure index dived 2.1%.

Meanwhile, homebuilders declined 2.1% as higher-for-longer rates partly weighed on investor sentiment, with Barratt Developments down 6% as the stock traded ex-dividend. Banks stocks were also down 0.4%, while life insurers dropped 1.4%.

Shares of Phoenix Group fell 5.8% after the life insurer posted a marginal rise in its half-yearly adjusted operating profit and traded ex-dividend.

HSBC edged down 0.2% after sources said the bank is set to acquire Citigroup's China consumer wealth management business, which manages more than $3 billion in assets. Britain set out

plans to ease key banking and insurance rules in the latest attempt to boost its vital financial sector following the country's departure from the European Union.

However, energy stocks rose 0.4% tracking higher oil prices and limiting losses. U.S. oil futures jumped to their highest in more than a year on Thursday as a drop in crude stocks in the United States added to worries over tight global supplies from OPEC+ output cuts.

"UK market has a very large concentration of energy companies," said Marija Veitmane, head of equity research at State Street Global Markets. "Oil supply will stay tight for some time, that will support oil price and so that's great for UK stocks in a relative sense."

Insurer M&G, cigarette maker British American Tobacco, paper and packaging producer Smurfit Kappa , property portal Rightmove Plc fell between 1.5% and 4.8% as they traded ex-dividend.