* FTSE 100 up 0.6 pct
* FTSE 250 up 1.1 pct
* Sterling rally aids mid-cap index
* Frankie & Benny's owner surges on sales rise
* Just Group slips for 2nd straight day
* Interserve slumps with administration imminent (Recasts, adds company news items, updates with closing prices)By Muvija M and Shashwat AwasthiMarch 15 (Reuters) - Britain's mid-cap index hit a 5-monthhigh on Friday, tracking a rally in sterling as talks betweenthe Northern Irish Democratic Unionist Party and Britishministers over Prime Minister Theresa May's Brexit deal weredescribed as "good".
The domestically-focused FTSE 250 hit its highestsince Oct. 10 and ended the day up 1.1 percent, while theblue-chip FTSE 100 rose 0.6 percent for its fifthstraight session in the black.
Industrials, consumer and financial stocks together addedmore than 140 points to the mid-cap index.The Northern Irish party that props up May's government saidit had held good talks with ministers on additional assurancesthat would be needed for them to back her twice-defeated Brexitdeal. Mid-caps were also lifted by gains in Frankie & Benny'sowner Restaurant Group , which jumped 10 percent afterannual pretax profit exceeded its forecast and recently acquirednoodle bar chain Wagamama posted strong sales. Ireland's main index , often considered a gauge ofBrexit mood, added 1.2 percent.Britain's parliament on Thursday approved asking theEuropean Union for a short delay if lawmakers can agree on aBrexit deal by March 20, or a longer delay if nothing can beagreed in time.However, Spreadex analyst Connor Campbell said the need forthe EU to unanimously approve any delay meant some uncertaintyremained, drawing some investors to defensive stocks.British American Tobacco added 2.7 percent andPrudential rose 2.6 percent.Credit rating agency Moody's also warned uncertainty aroundthe Brexit outcome was very high and would continue to weigh oninvestment, hiring and spending decisions, which was creditnegative for UK issuers.Housebuilders , considered to be among mostvulnerable to economic hits stemming from Brexit, rose on theback of Thursday's vote and after a trading update from mid-capBerkeley.Berkeley rose 1.9 percent after it stuck to itsprofit target despite softness in Britain's housing marketcaused by Brexit uncertainties.Retirement services specialist Just Group slippedfor a second session to close 4.2 percent lower, adding to a 12percent fall on Thursday which followed a cash call. Interserve shares lost more than a third of their
value and were suspended from trading as the heavily indebtedoutsourcer was set to go into administration after shareholdersrejected a rescue plan. Asia-exposed financial heavyweights gained on Sino-U.S.trade optimism.
(Reporting by Muvija M and Shashwat Awasthi in Bengaluru;Editing by Alison Williams and Kirsten Donovan)