U.K. Shares Decline for Seventh Day; DSG, SABMiller, Shire Fall

By Adam Haigh

Jan. 15 (Bloomberg) -- U.K. stocks dropped for a seventh day, the FTSE 100 Index’s longest losing streak in more than four years, as concern mounted the slowdown in the global economy will continue to weigh on earnings.

DSG International Plc slumped 6.3 percent as Britain’s biggest consumer-electronics retailer said same-store sales retreated. SABMiller Plc fell after reporting an unexpected decline in third-quarter beer shipments as the global economic slump dented demand from Latin America to eastern Europe. Shire Plc lost 3.6 percent as Merrill Lynch & Co. advised clients to sell the shares as an upcoming launch of a generic version of its Adderall drug may weaken profits.

The benchmark FTSE 100 Index fell 31.6 points, or 0.8 percent, to 4,149.04 at 1:04 p.m. in London. The measure extended its 2009 retreat to 6.4 percent as investors shrugged off the European Central Bank’s decision to cut its benchmark interest rate by half a percentage point to 2 percent, joining efforts by global authorities from Washington to London to stem the economic crisis.

“There’s reignited concern about the length and depth of this global recession,” said Richard Hunter, London-based head of U.K. equities at Hargreaves Lansdown. “Despite the best efforts of governments and central banks to get lending going between institutions, it will take a long time to see this”

The FTSE All-Share Index dropped 0.9 percent and Ireland’s ISEQ Index lost 0.4 percent.

DSG tumbled 6.3 percent to 18.75 pence after saying same- store sales fell 10 percent in the 12 weeks ended Jan. 10 as customers waited for deeper discounts after the Christmas holiday period.

SABMiller Retreats

DSG expects “high single-digit negative” like-for-like sales this year as the U.K. recession bites, Chief Executive Officer John Browett said in a conference call.

SABMiller, the world’s second-largest brewer, declined 1.6 percent to 1,043 pence. The brewer of Peroni Nastro Azzuro saw a reduction in the quantity of lager sold, which missed analysts estimates.

Home Retail Group Plc slid 6.3 percent to 193. The owner of Argos and Homebase brands said same store sales at Argos fell by 7.5 percent in the 18 weeks to Jan. 3. Same store sales at its Homebase chain of stores declined by 10.2 percent in the period.

Shire retreated 3.6 percent to 993 pence. Merrill Lynch lowered its recommendation on the stock to “underperform” from “buy.”

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

Associated British Foods Plc (ABF LN) added 9.5 pence, or 1.4 percent, to 684.5, snapping four days of losses. The owner of British sugar said revenue for the 16 weeks to Jan. 3 was 21 percent above the year-earlier period. Sales at its Primark discount clothes stores were up 18 percent.

William Hill Plc (WMH LN) added 21.25 pence, or 10 percent, to 228.5 after the U.K. bookmaker said it anticipates earnings before interest, tax and exceptional items to be about 275 million pounds ($401 million) for 2008, as the company “continued to show resilient trading.”

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net