By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Shares of Tesco PLC topped the list of
decliners in London on Wednesday, leading the benchmark to a fourth
straight day of losses, after the supermarkets firm posted a drop
in profit.
The FTSE 100 index gave up 0.8% to 6,410.29, on track for the
longest losing streak in almost two months.
Tesco (TSCDY) slid 3.7% after reporting a decline in first-half
net profit, as it struggles to regain its footing in the U.K. and
faces sales declines in international markets.
Another food retailer, J Sainsbury PLC gave up 1.3%, failing to
get a boost from stronger sales numbers in the second quarter. The
firm said it was the only major supermarket to expand its market
share during the period, adding that its online grocery business
grew over 15% during the quarter.
Unilever PLC (UL) added pressure in London, down 1.8%, after UBS
cut the consumer-products firm to neutral from buy, citing slowing
demands in emerging markets on top of currency weakness.
"Whilst this does not invalidate the long term structural EM
growth story, perhaps the market needs to revisit the growth
algorithm one should apply. With Unilever positioning itself as
'the' emerging market company it will unavoidably find itself in
the middle of this debate," the analysts said.
Shares of BP PLC (BP) erased 1% amid the second phase of the oil
major's trial over the 2010 Deepwater Horizon Oil spill in the Gulf
of Mexico. A safety consultant appearing as an expert witness told
the court on Tuesday that BP could have ended the oil spill two
months sooner than it did, according to the Financial Times.
Other oil firms were also lower, tracking a decline in oil
prices. Shares of Royal Dutch Shell PLC (RDSB) dropped 0.9% and
Tullow Oil PLC lost 1.8%.
Bucking the negative trend in London, shares of Barclays PLC
added 1.3% after Société Générale lifted the bank to buy from hold,
according to Dow Jones Newswires.
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