By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks on Wednesday erased gains
and slipped from a 41/2 year high, after disappointing U.S. growth
data weighed on investors' minds, while Imperial Tobacco Group PLC
slumped after a profit warning.
The FTSE 100 index fell 0.3% to close at 6,323.11, pausing after
a five-day rally.
Shares of Imperial Tobacco Group (ITYBY) slumped 4.3%. The
tobacco firm issued a profit warning for the first half, citing
weakness in the European market, which is one of the company's key
markets.
Petrofac Ltd. dropped 7%, as peer firm Saipem SpA sank 34%,
after forecasting a significant decline in earnings for 2013.
Pointing in the other direction, shares of BP PLC (BP) inched
0.1% higher after the oil major said a federal court approved a
settlement to resolve all criminal claims related to the Deepwater
Horizon spill accident. and
The broader U.K. stock market had started Wednesday on a strong
footing, but was sent lower in afternoon action on the back of
weaker-than-expected growth numbers from the U.S. Gross domestic
product for the fourth quarter shrank 0.1%, down from 3.1% in the
third quarter, and below estimates of a 1% rise.
Most mining firms were on the decline, with shares of Kazakhmys
PLC off 4% and Anglo American PLC 2.3% lower.
Shares of Antofagasta PLC sank 8.3%. The miner said it expects
2013 copper production in line with 2012, while warning that the
cost of copper production is set to rise at a faster pace.
Shares of chemicals firm Johnson Matthey PLC lost 4.2%, after
reporting a 19% drop in adjusted pretax profit for the third
quarter.
Some banks were on the rise in London. Shares of Royal Bank of
Scotland Group PLC (RBS) rose 0.4% after suffering a 6% loss on
Tuesday on news U.S. authorities are pushing the bank to plead
guilty to criminal charges to settle allegations of rate
rigging.
Shares of HBSC Holdings PLC (HBC) gained 0.6%.
Outside the main U.K. index, shares of Imagination Technologies
Group PLC surged 13%, after Morgan Stanley lifted the stock to
overweight from equal weight.
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