U.K. Stocks Fall, Led by Rio Tinto, Xstrata; Elan Shares Jump

By Alexis Xydias

Jan. 13 (Bloomberg) -- U.K. stocks fell for a fifth day, led by mining companies as prices for metals declined and an economic slowdown hurts demand. Rio Tinto Group and Xstrata Plc retreated more than 5 percent.

The benchmark FTSE 100 Index fell 1.1 percent to 4,377.32 as of 8:37 a.m. in London. The broader All-Share Index lost 1.1 percent. Ireland’s ISEQ Overall Index added 1.2 percent, lifted by Elan Corp. shares.

Rio Tinto fell 6.3 percent to 1,506 pence, the steepest drop in the FTSE 100. The world’s third-largest mining company delayed work on a $371 million program to automate iron ore trains in Western Australia and suspended a copper mine expansion because of the global recession.

Xstrata declined 5.7 percent to 766.5 pence. Europe’s largest zinc producer will shutter its Handlebar Hill zinc and lead mine in Australia from Feb. 12 as the global economy slows down.

Copper, nickel, lead and zinc declined in the London Metals Exchange.

Elan jumped 16 percent to 6.90 euros. Ireland’s largest drugmaker hired Citigroup Inc. to conduct a review of the company’s strategic alternatives, it said. These could include a minority investment, strategic alliance, merger or sale, Elan added.

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

J.D. Wetherspoon Plc (JDW LN) lost 17.75 pence, or 5.6 percent, to 298.25. The owner of almost 700 U.K. pubs was cut to “sell” from “hold” at Deutsche Bank AG, which said the company has the “biggest refinancing hurdles” in its industry.

Premier Foods Plc (PFD LN) rose 2.25 pence, or 6.3 percent, to 38.25. The owner of the Hovis brand said full-year sales increased 9 percent, with second-half sales up 10 percent, in “an increasingly tough environment for the U.K. consumer.”

SIG Plc (SHI LN) added 4 pence, or 1.8 percent, to 223. Britain’s biggest supplier of insulation and roofing materials said sales in 2008 rose about 24 percent and that profit before tax is expected to be in line with market estimates.

Taylor Wimpey Plc (TW/ LN) retreated 1 pence, or 4 percent, to 24 pence, its first decline in six sessions. The U.K.’s biggest homebuilder said it sold 35 percent fewer homes last year and will make further writedowns of its land amid the U.K.’s worst housing slump for 25 years.

Tesco Plc (TSCO LN) increased 8.6 pence, or 2.5 percent, to 358.9 pence. The U.K.’s largest retailer said revenue growth accelerated over the Christmas season after the company reduced prices to keep customers from switching to discount supermarkets.

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