U.K. Stocks Fall for Third Day; Anglo American, BHP Retreat

By Sarah Thompson

Oct. 23 (Bloomberg) -- U.K. stocks declined for a third day, led by mining companies, on deepening concern a global economic slump will damp demand for commodities.

Anglo American Plc slipped 4 percent after saying it is reviewing its projects and capital expenditure as the global credit crisis leads to slowing economic growth and falling metal prices. Antofagasta Plc, Rio Tinto Group and BHP Billiton Ltd. also retreated.

The FTSE 100 Index eased 100.91, or 2.5 percent, to 3,939.98 at 1:10 p.m. in London, having gained as much as 1.1 percent. The FTSE All-Share index lost 2.5 percent and Ireland's ISEQ index was little changed.

``Given the slowdown in growth we are seeing around the world, the previous valuations on which the mining sector was trading were unsustainable and pricing now reflects a more realistic outlook for earnings going forward,'' said Alan Borrows, who helps oversee 1.1 billion pounds at Midas Capital Partners in Liverpool, England.

Anglo American, the world's fourth-biggest diversified mining company, fell 5.9 percent to 1,200 pence. ``Against this economic background, Anglo American is conducting a review of its project pipeline,'' the company said in a statement distributed by London's Regulatory News Service.

Antofagasta, which controls three copper mines in Chile, slumped 13 percent to 252 pence. Copper tumbled below $4,000 a ton for the first time since November 2005. Lead, nickel and zinc also fell in London.

Rio Tinto, the world's second-largest iron ore exporter, lost 13 percent to 2,096 pence. BHP, the world's biggest mining company, slipped 10 percent to 791.5 pence.

European Union regulators told lawyers for BHP its $69 billion hostile bid for Rio may break antitrust rules.

Unilever, the world's second-largest consumer-products, added 1.5 percent to 1,377 pence. Nestle SA, the world's biggest food company, raised its forecast for sales growth.

Reckitt Benckiser Plc, the largest maker of household cleaners, advanced 0.8 percent to 2,449 pence.

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

U.K. companies:

Cattles Plc (CTT LN) added 5.25 pence, or 15 percent, to 40. The U.K. provider of subprime loans said earnings in the second half of the year are meeting its forecast as it progresses with a plan to get a banking license.

DSG International Plc (DSGI LN) climbed 2.5 pence, or 11 percent, to 26. The U.K.'s largest electronics retailer said a sales decline got no worse in the past two months and plans to cut capital spending as consumers rein in spending on computers and appliances.

Raymarine Plc (RAY LN) slumped 41 pence, or 65 percent, to 22.25. The U.K. maker of electronic marine products such as fish- finders said full-year profit will ``significantly'' miss analysts' estimates as fewer boats are built.

Rightmove Plc (RMV LN) lost 20 pence, or 9.1 percent, to 199.25. The operator of the U.K.'s largest residential-property Web site will cut its workforce by 20 percent to save money as fewer house sales are completed. The company had fallen to its lowest-ever value.

Wolseley Plc (WOS LN) decreased 22.75 pence, or 7.5 percent, to 282. The world's biggest distributor of plumbing and heating equipment will fire 3,000 jobs at its unprofitable U.S. Stock Building Supply unit following the worst housing slump since the Great Depression and a failed attempt to sell the business.

To contact the reporters on this story: Kevin Crowley in London kcrowley1@bloomberg.netSarah Thompson in London at sthompson17@bloomberg.net.