The FTSE 100 closed 1.50% lower at 10,654.33 on Friday, falling 162 points in its biggest one-day decline since 8 July.
The FTSE 250 dropped 0.65% to 24,193.65, as geopolitical concerns and weakness among several large-cap stocks outweighed stronger-than-expected UK retail sales.
Airtel Africa was the biggest FTSE 100 faller, dropping as much as 11.3% before closing around 9.9% lower following reports that the planned London flotation of its Airtel Money business could be significantly smaller than previously expected.
The mobile-money unit is reportedly considering an IPO of at least $800 million, compared with an earlier target of around $1.5 billion to $2 billion.
UK retail sales provided a brighter economic signal, with volumes rising 0.5% in August, beating expectations for a 0.2% decline and reversing July’s 0.5% fall. Sales were 2.4% higher year-on-year.
Middle East tensions remained a key market risk after reports that China had asked Iran to help restrain Yemen’s Houthis, whose advances around the Red Sea and Bab el-Mandeb Strait have increased concerns over global shipping and Saudi oil exports.
Elsewhere, AstraZeneca finished broadly flat after receiving positive European regulatory recommendations for expanded use of Enhertu and approval of Alexion’s Klygefa.
Despite resilient consumer data, Friday’s sharp decline underlined investors’ continued sensitivity to geopolitical risk, energy-market disruption and company-specific disappointments.
