By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- The U.K.'s benchmark stock index dropped
from a four-week high on Thursday, with mining firms leading the
charge south, while supermarket firms rose after a well-received
earnings report from Wm. Morrison Supermarkets PLC.
The FTSE 100 index slipped 0.2% to 6,574.44 after closing at the
highest level since August 13 on Wednesday.
Shares of Aggreko PLC fell 3.3% to 15.97 British pounds after
Deutsche Bank cut the price target on the temporary-power provider
by 11% to GBP18.70. The analysts said pressure from emerging
markets is likely to continue to weigh on profitability in the near
term.
Shares of Melrose Industries PLC fell 3.2% after Citigroup cut
the investment company to neutral from buy.
As a sector, mining firms added the most pressure on the London
index as metals prices mostly moved lower. Shares of Vedanta
Resources PLC lost 1.8%, Randgold Resources Ltd. fell 1.7%, and Rio
Tinto PLC (RIO) shaved off 1%.
On a more upbeat note, shares of Wm. Morrison Supermarkets rose
2.9% after the supermarket chain said it expects sales to improve
in the second half and full-year performance to be in line with its
previous expectations. Additionally, the food retailer lifted
dividends 10%.
Other supermarket chains were also on the rise, with shares of J
Sainsbury PLC up 1% and Tesco PLC (TSCDY) rising 0.7%.
Shares of AMEC PLC put on 2.5% after the oil-services firm said
it has no intention of making an offer for Kentz Corp. Ltd. . Kentz
shares dropped 11%.
Further of interest for investors in London, the U.K. government
announced plans to take Royal Mail PLC public in "the coming
weeks". The company will be listed on the London Stock Exchange and
the minimum application offer for interested U.K. shareholders is
GBP750 ($1,187).
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