By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Weak earnings from some of the U.K.'s
heavyweights weighed on London's benchmark stock index on Thursday,
offsetting better-than-expected growth data for the country.
The FTSE 100 index lost 0.1% to 6,428.65, after closing two days
in positive territory.
The index showed little reaction to the preliminary
gross-domestic-product release, showing the U.K. economy avoided a
triple-dip recession in the first quarter. GDP rose 0.3%, beating
expectations of a 0.1% improvement.
"A continuation of growth in the second quarter is by no means
assured. The euro-zone crisis is not only hurting exports but is
also having a damaging effect on global business confidence," said
Chris Williamson, chief economist at Markit, in a note.
"At the same time, weak domestic spending and investment by
businesses can be linked to lingering uncertainty about the
economic outlook and a lack of lending. Consumer spending is
meanwhile being subdued by job worries, low pay and high
inflation," he added.
Instead, investors digested earnings results from major FTSE
components. AstraZeneca PLC (AZN) lost 2.6%, after the drug maker
reported a 36% drop in first-quarter pretax profit, falling short
of analysts' expectations.
Peer firm GlaxoSmithKline PLC (GSK) nudged 0.4% lower.
Among other stocks on the decline, Unilever PLC (UL) slid 1.9%.
The consumer-goods firm reported first-quarter sales growth below
expectations, as slowing North America growth and a weak start to
ice cream purchases in Europe added pressure.
Shares of car insurer Admiral Group PLC shaved off 0.7%, after
the company said year-on-year car-insurance premiums have dropped
around 10%.
On a more upbeat note, shares of British American Tobacco PLC
(BTI) added 2.1%, after the firm said first-quarter revenue went up
5% at constant exchange rates. Additionally, the board said it's
confident of another year of earnings growth in line with long-term
strategic goals.
Shares of Vodafone Group PLC (VOD) added 2.3%, after reports
said Verizon Communications Inc. (VZ) plans to bid for joint
venture Verizon Wireless.
Outside the main index in London, shares of Kazakhmys PLC jumped
4.2%. The miner said it's on track to meet its full-year copper
output target.
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