U.K. Stocks Fall to Lowest Since 2004, Led by HBOS, Antofagasta

By Alexis Xydias

Oct. 6 (Bloomberg) -- U.K. stocks plummeted, heading for their lowest close in almost four years, led by banks and mining companies on concern the credit-crisis is deepening and as metals prices plunged. HBOS Plc and Antofagasta Plc fell.

The FTSE 100 Index plunged 259.98, or 5.3 percent, to 4,720.27 as of 12:47 p.m. in London, poised for its lowest close since Dec. 2004. The FTSE All-Share Index lost 5.2 percent and Ireland's ISEQ Index dropped 7.4 percent.

The FTSE 100 has lost 27 percent this year as the cost of borrowing money for banks surged, two lenders had to be nationalized, and companies faced slowing consumer demand. The British benchmark slumped 13 percent in the third quarter, a fifth consecutive quarterly decline and its poorest showing since the same period in 2002.

``Another Monday, another banking crisis,'' Manoj Ladwa, senior trader at ETX Capital in London, said. ``Black Mondays used to be a once-a-decade event. Now they're coming along more regularly than a London bus.''


Investors sold banking shares across Europe today as BNP Paribas SA took control of Fortis, Germany was forced to rescue Hypo Real Estate Holding AG and governments pledged to protect depositors. They also reduced investments in metals amid concern a slowing economy will curb demand for commodities.

HBOS, the U.K. bank that agreed to be bought by Lloyds TSB Group Plc, retreated 14 percent to 171.9 pence. Lloyds fell 6.8 percent to 270.5 pence. Royal Bank of Scotland Group Plc, the U.K.'s second-biggest bank, fell 15 percent to 157.6 pence.

Metals, Oil Drop

Antofagasta, which controls three copper mines in Chile, declined 11 percent to 339.75 pence. Lonmin Plc, the world's third-largest platinum producer, fell 6.1 percent to 1,599 pence. Copper, zinc and aluminum plunged by the exchange-imposed daily limit in Shanghai, while gold and natural-rubber futures also fell.

Royal Dutch Shell Plc, Europe's biggest oil company, fell 6 percent to 1,530 pence. BP Plc, the second largest, sank 5.8 percent to 440.5 pence.

New York crude-oil price tumbled as much as 5.1 percent to $89.07 a barrel, the first time it dipped below $90 since February. The contracts have dropped for four days now.

Anglo Irish Bank Corp. led Irish financial stocks lower, dropping 19 percent to 4.10 euros. The Irish Times reported Oct. 4 the government may charge banks an annual fee of 0.1 percent to 0.2 percent of their total deposits for guaranteeing their liabilities.

`Larger Bill'

``That would equate to 440-880 million euros ($598 million- $1.2 billion) a year for the six domestic banks in the scheme and is a larger bill that we would have thought,'' Scott Rankin, analyst at Davy stockbrokers in Dublin, wrote in a research note today.

Allied Irish Banks Plc, the country's biggest lender, fell 9.3 percent to 6.80 euros and Bank of Ireland Plc lost 13 percent to 4.2 euros. Irish Life and Permanent Plc declined 21 percent to 5.115 euros.

Last week the Irish parliament yesterday approved a 400 billion-euros ($550 billion) plan to protect deposits and borrowings of six local banks and stave off a financial collapse.

``The bears remain in control,'' said Nick Batsford, an analyst at Hobart Capital Markets in London who said technical indicators suggest the FTSE 100 may fall to 4,550. ``Although readings show an area of value in some industries, it takes a very brave man to go bottom fishing right now.''

The following stocks also rose or fell in U.K. and Irish markets. Stock symbols are in parentheses:

U.K. Companies:

Cookson Group Plc (CKSN LN) lost 30.75 pence, or 7.1 percent, to 404.75. The world's biggest maker of molds for steelmakers said trading in electronics was below the same period last year, the company said.

Creston Plc (CRE LN) rose 3.25 euros, or 6.8 percent, to 51. Cartesian Capital Group, a U.S. private-equity company, has written to Creston Plc about a possible buyout of the company, the Daily Telegraph reported, citing an unidentified person familiar with the matter.

Irish Companies:

Ryanair Holdings Plc (RYA ID) dropped 8.7 cents, or 3.8 percent, to 2.183 euros. Europe's biggest discount airline has asked about 600 pilots to take unpaid leave over the winter months, the Sunday Times reported, citing a letter from the airline to staff.

To contact the reporters on this story: Alexis Xydias in London at axydias@bloomberg.net.