By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks fell Wednesday, on track for
a second consecutive decline, with a pullback for InterContinental
Hotels Group PLC after a ratings downgrade and a drop in shares of
Johnson Matthey PLC following the company's trading update.
The FTSE 100 turned slightly lower, down 0.1% at 6,805.18, as
retailers and oil and gas stocks lost ground. Shares of Wm Morrison
Supermarkets PLC drifted to the bottom of the benchmark as they
fell 6.1%. Shares of oil majors BP PLC (BP) and Royal Dutch Shell
PLC (RDSB) were each down 1.4% as oil prices fell following a
bigger-than-expected rise in crude supplies.
The FTSE 100 on Tuesday fell 0.6%, marking the benchmark first
loss after eight consecutive advances.
On Wednesday, Johnson Matthey shares slumped 4.9% as investors
assessed a third-quarter update from the maker of catalysts for
auto exhausts. Credit Suisse noted that the company's underlying
profit before taxes of 96.5 million pounds ($146.6 million) was 6%
below its estimate of GBP102.8 million, while it was up 1%
year-over-year.
The profit-before-taxes figure "was fine," said Numis analyst
Charles Pick in a note, "but there were warning remarks regarding
the [process technologies] division that mainly apply next [fiscal
year]."
Johnson Matthey said it expects full-year results to be in line
with expectations.
Also heading lower was InterContinental Hotels Group , with
shares falling 2% after Deutsche Bank cut its rating on the company
to hold from buy. Shares of IHG, whose brands include Holiday Inn
and Crowne Plaza, have been trading at a premium to their European
peers and to most U.S. hotel groups, said Deutsche analysts Geof
Collyer and Richard Carter, in a report. "In the short-to-medium
term, with the U.S. hotel cycle peak looming ever closer, we see
little that can drive the rating meaningfully further."
But Experian shares were the best performing on the FTSE 100,
rising 2.9% after the credit-checking services company said it
plans to buy back $600 million in shares over the next 14 months in
an effort to return capital to shareholders.
Anglo American shares rose 1.8% as the diversified mining
company as part of its update posted a 16% rise in iron-ore
production in the fourth quarter. But the company also warned that
it's set to incur noncash impairment charges in full-year results
stemming from the drop in commodity prices.
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