By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks fell Friday, with housing
shares hit after a broker downgrade of the sector.
The FTSE 100 fell 0.3% to 9,809.31. The London benchmark was on
track for a weekly rise of 0.1%.
Housing shares were the worst performers after Jefferies said it
no longer recommends investors buy U.K. residential-linked shares
under its coverage. Home builder Taylor Wimpey fell 4.3%, Barratt
Developments PLC lost 4% and Persimmon PLC moved 3.3% lower.
"Negative" newsflow on mortgage approvals, housing transactions,
weak house-price data and lower U.K. economic growth will put
pressure on the sector during the first quarter, said Jefferies
analysts Anthony Codling and Sam Cullen in a note Friday.
Share-price weakness will persist in the second quarter, stemming
from uncertainty around the U.K. general election set for May, they
said.
Meanwhile, shares of Tesco PLC fell 1.2% after Moody's Investors
Service cut its ratings on the supermarket chain to junk status.
Structural changes in the U.K. grocery retail market "will continue
to challenge the company's operating performance even with the
benefits of the significant restructuring actions," undertaken by
Tesco, Moody's said in a statement.
Tesco shares on Thursday rallied 15% as the company laid out
plans for a turnaround.
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