LONDON MARKETS: U.K. Stocks Seesaw As Morrisons Drops, AB Foods Climbs

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- U.K. equities swayed between small gains and losses Wednesday, easing from a nearly two-week high, with Wm. Morrison Supermarkets PLC down after a broker cut its estimates on the grocery chain, while Associated British Foods PLC shares sweetened following a financial update.

The FTSE 100 index slipped 2 points to 6,679.10. The benchmark on Tuesday closed at its highest level since April 4, fueled by a rally in drug makers.

On the losing end of the index was ARM Holdings PLC , with shares of the computer-chip designer down 3.5% and unable to gain traction after it reported a rise in first-quarter profit. Also hit was Morrisons , which dropped 3.2% after J.P. Morgan Cazenove reduced its per-share earnings estimates for 2015/2016 by 18%, in the wake of the company's annual report released last week.

But an 8.6% share-price surge pushed Associated British Foods PLC to the top of the FTSE 100 index, as strength from the company's Primark clothing-retail chain and grocery units aided in a rise in half-year profit. AB Foods also said it plans to open Primark stores in the northeast of the U.S.

Meanwhile, investors received minutes from the Bank of England's policy meeting held earlier this month. The board voted 9-0 in favor of keeping interest rates on hold and making no changes to its 375 billion pound ($631 billion) asset-purchase program. The central bank said the decision was made within the forward-guidance framework laid out in August 2013, as the unemployment rate remained above the 7% threshold at the time of the meeting.

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