UK stocks set for weekly gains as investors seek shelter in defensive sectors

Oct 16 (Reuters) - Britain's main stock indexes were heading for weekly gains on Friday, as investors sought refuge in defensive sectors from a rout in AI-linked equities globally, while a dip in bond yields boosted risk sentiment ahead of next week's inflation figures.

The blue-chip FTSE 100 index .FTSE edged 0.08% lower to 10,831.70 points by 10:12 GMT, but was on track for its best week since early April, while the midcap FTSE 250 .FTMC rose 0.55%.

• The defensive healthcare sector was set for a nearly 5% gain for the week, despite falling over 1% on Friday

• Drugmakers AstraZeneca AZN.L and GSK GSK.L fell 1.8% and 1%, respectively, on the day

• The personal goods sector .FTNMX402040 was up 7.2% for the week

• Heavily weighted banks slipped on Friday after the Guardian reported British finance minister John Healey was set to tax the lenders in the budget later this month

• "While big international banks in the UK are likely to be less affected, domestic names are in the firing line," said Kathleen Brooks, research director at XTB, in a note

• NatWest Group NWG.L and Lloyds Banking LLOY.L were down 2.2% each

• Bank of England Governor Andrew Bailey said signs of second-round inflation were limited ahead of next week's data release for September

• Traders are pricing in four BoE rate hikes over the next 12 months, according to LSEG data

• The UK's 10-year benchmark yields were heading for weekly declines after three straight weeks of gains

• Defence stocks .FTNMX502010 helped limit the losses on Friday: BAE Systems BAES.L, Melrose Industries MRON.L and Babcock International BAB.L rose between 1.5% and 3.7%

• E-commerce group THG THG.L rose 6.7%, extending a surge of 16% on Thursday after it raised its annual adjusted core profit forecast