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Updates to market close

By Shashwat Chauhan and Shristi Achar A

Feb 23 (Reuters) -The FTSE 100 ended lower on Thursday, as several banking and healthcare heavyweights traded ex-dividend, although shares of Rolls-Royce zoomed more than 20% after the aeroplane engine maker reported upbeat results.

The blue-chip index .FTSE was down 0.3%, declining for a third straight session.

Shares ofbanks including Barclays BARC.L and Standard Chartered STAN.L and healthcare majors AstraZeneca AZN.L and GSK GSK.L slipped as they tradedwithout entitlement for dividend payout.

Limiting losses on the FTSE 100 however Rolls-Royce RR.L surged 23.7% to post its biggest percentage gain in more than two years after the company's CEO forecast more profit growth in 2023.

"There was a lot of concern coming into this year generally about margins, results and (if) companies would be able to maintain their margins," said Caroline Simmons, UK chief investment officer at UBS Global Wealth Management.

"But what we've been seeing is so far the results have been broadly okay."

The FTSE250 midcap index .FTMC rose 0.6%, with John Wood Group Plc WG.L jumping 29.0% to the top of the index after theoilfield services and engineering firm said it received and rejected takeover proposals from Apollo Global Management.

Meanwhile, Bank of England interest rate-setter Catherine Mann said that it was too soon to say the risks posed by the surge in inflation last year had eased and that the central bank should continue to raise borrowing costs.

"Right now, the main driver for equities is just this reassessment of whether we have in fact priced peak rates, even if it means the recession is not coming," said Michael Metcalfe, head of macro strategy at State Street Global Markets.

Strong economic data in January has shaken investor confidence, he added.

Among other single stocks, Mondi MNDI.Lfell 4.8% after the paper packaging companygave a cautious outlook.

Drax Group DRX.Llost 3.7% asanalysts said falling forward sales could hit the power generation firm's core earnings in 2024. The companyposted annual profit that beat analysts' expectation.

Reporting by Shashwat Chauhan and Shristi Achar A in Bengaluru; editing by Uttaresh.V, Eileen Soreng and Andrew Heavens

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