LONDON MARKETS: FTSE 100 Suffers 3rd Straight Loss As LSE, BHP Tumble
04 Mai 2016 - 6:17PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
U.K. construction PMI at lowest since 2013
U.K. stocks were hit hard Wednesday as shares in the London
Stock Exchange Group PLC and mining heavyweight BHP Billiton PLC
helped the blue-chip benchmark log a third consecutive decline.
The FTSE 100 lost 1.2% to end at 6,112.02. The index fell marked
its lowest close since April 5, according to FactSet data.
London Stock Exchange (LSE.LN) was among the benchmark's biggest
losers, closing down 4.2%. The stock slumped after Intercontinental
Exchange Inc. (ICE)--which runs the New York Stock
Exchange--decided against making a bid
(http://www.marketwatch.com/story/ice-opts-not-to-bid-for-london-stock-exchange-2016-05-04)
to acquire LSE.
LSE and Germany's Deutsche Boerse AG (DB1.XE) agreed in March to
merge, with the deal expected to establish Europe's largest
stock-exchange operator.
Also circling the bottom of the index was iron-ore heavyweight
BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) as shares dropped 5.8%.
The move came after Brazilian federal prosecutors filed a civil
lawsuit Tuesday over a catastrophic dam failure in November.
Prosecutors are seeking up to 155 billion reais ($43.55 billion)
(http://www.marketwatch.com/story/mining-firms-bhp-vale-face-44b-lawsuit-in-brazil-2016-05-03)
for cleanup and remediation.
The dam was run by Samarco Mineração, a joint venture between
BHP and Brazilian miner Vale SA (VALE5.BR) (VALE5.BR).
Check out:How London's mayoral election could help Brexit's
opponents
(http://www.marketwatch.com/story/londons-mayoral-election-threatens-a-setback-for-brexits-backers-2016-05-04)
Elsewhere in the mining space, Randgold Resources Ltd. (RRS.LN)
posted a 13% rise in first-quarter profit
(http://www.marketwatch.com/story/randgold-profit-rises-on-higher-gold-output-2016-05-04-24853252),
but the gold miner's shares slid 12%.
"It's been another downbeat day for the FTSE 100 with investors
struggling to find much worth cheering," said Tony Cross, market
analyst at Trustnet Direct, in a note. "Mining stocks remain a
significant drag on sentiment with Randgold Resources now wrestling
its way to foot of the index as operational difficulties take a
toll on the stock."
Meanwhile, shares of Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN)
shed 2.2%. The oil major said quarterly adjusted earnings fell to
$1.6 billion
(http://www.marketwatch.com/story/shell-profit-falls-but-beats-forecasts-2016-05-04-34851723)
from $3.7 billion a year earlier, but that still beat analysts'
expectations.
Grocers: Also in the red were shares of J Sainsbury (SBRY.LN).
They fell 6.3% after the grocer cut its dividend payout
(http://www.marketwatch.com/story/sainsbury-cuts-dividend-payout-2016-05-04)
in a continued effort to manage costs. The U.K.'s second-largest
grocer by market share swung to a fiscal year pretax profit of
GBP548 million.
Separately, a survey from Kantar showed the top four U.K.
grocers lost market share
(http://www.marketwatch.com/story/top-four-uk-grocers-lose-market-share-2016-05-04)during
the 12 weeks ended April 24 to German discounters Aldi and Lidl.
Shares of Tesco PLC (TSCO.LN)(TSCO.LN) and Wm Morrison Supermarkets
PLC (MRW.LN) fell 5.4% and 1.8%, respectively.
But topping the FTSE 100 was Next PLC (NXT.LN), driving up 3.5%.
The apparel and household retailer cut its full-year forecast and
posted a quarterly decline in brand sales. But a more than 4% rise
in sales in its directory business helped lift Next's shares, said
Hargreaves Lansdown in a note.
The pound fell against the dollar
(http://www.marketwatch.com/story/dollar-advances-for-second-day-against-key-rivals-2016-05-04),
buying $1.4485. Sterling was pressured by a Markit/CIPS report that
said U.K. construction activity slumped to the lowest since 2013 in
April, to a reading of 52.0. Analysts polled by FactSet had
expected a reading of 54.
(END) Dow Jones Newswires
May 04, 2016 12:02 ET (16:02 GMT)
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