U.K. Stocks Decline, Led by Shell, Anglo American, Rio Tinto

By Sarah Thompson

Oct. 15 (Bloomberg) -- U.K. stocks declined for the first time in three days, led by energy producers on concern a $2 trillion global push to rescue banks will not be enough to bolster economic growth.

Royal Dutch Shell Plc, Europe's biggest oil company, fell 2.6 percent. Anglo American Plc fell by a record and Rio Tinto Group plunged 10 percent as commodity producers followed metal prices lower.

The benchmark FTSE 100 slipped 186.99, or 4.3 percent, to 4,207.22 at 2:17 p.m. in London. The gauge had rallied 12 percent in the last two days as governments and central banks worldwide announced bailouts and funding to unfreeze credit markets and prevent the collapse of the global banking system.

``Miners are being hit hard and this is taking down the whole U.K. market,'' said Jimmy Yates, a trader at CMC Markets in London. ``After the recent rout in financial stocks, investors are now turning their negative attentions to this sector. It's no surprise to see money coming out of these stocks.''

The FTSE All-Share Index lost 4.1 percent today and Ireland's ISEQ Index decreased 3.6 percent.

Indexes extended declines after U.K. unemployment rose to the highest level in almost two years in September as the prospect of a recession and the global financial crisis prompted a spate of job cuts from banks to construction companies.

Shell declined 4.2 percent to 1,433 pence. Oil fell as much as 1 percent to $77.85 today. Prices, down 8.6 percent from a year ago, have dropped 47 percent from the record $147.27 a barrel on July 11.

Copper Slides

Anglo American, the world's second-largest mining company, lost 15 percent to 1,404 pence, the biggest drop since at least 1999. Copper, aluminum, nickel and other industrial metals fell as a slump in shipping costs heightened speculation that demand will weaken.

Separately, Rio Tinto, battling an $86 billion takeover from BHP Billiton Ltd., may delay the planned sale this year of $10 billion of assets because of the global financial crisis.

The company is also reviewing its near-term spending timetable and project costs ``against the backdrop of the current markets,'' according to a statement. It wants to sell the assets to help pay for its $38.1 billion purchase last year of aluminum producer, Alcan Inc. Rio decreased 13 percent to 2,540 pence.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

U.K. companies:

Autonomy Corp. (AU/ LN) advanced 5.5 pence, or 0.7 percent, to 823.5. The U.K.'s second-biggest software company said third-quarter profit rose to a record on cash collection from blue-chip customers and as clients complied with new U.S. regulations.

Pearson Plc (PSON LN) added 10 pence, or 1.8 percent, to 569.5. The publisher of the Financial Times newspaper said profit this year will be at the top end of analyst estimates.

Irish companies:

Fyffes Plc (FFY ID) rose 3 cents, or 12 percent, to 28.5 cents in Dublin. The Irish banana distributor wasn't among a group of companies that will be fined by the European Union for fixing prices. Based on the penalty criteria, the fine could have been as much as 55 million euros, according to Goodbody Stockbrokers.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net