LONDON MARKETS: FTSE 100 Suffers 3rd Straight Loss As LSE, BHP Tumble

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).

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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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