Finance & Stock Market News

By Tricia Wright

LONDON, Nov 26 (Reuters) - Britain's top share index fell

sharply on Thursday, giving back the previous session's gains,

weighed by weakness in banks on concerns over possible Dubai

exposure, and with miners hit by a fall in metals prices.

At 0931 GMT, the FTSE 100 was off 88.69 points, or

1.7 percent, at 5,276.12, after closing 0.8 percent higher on

Wednesday.

'The Dubai debt debacle and the uncertainty that it has

created as a result of the Kingdom's forthcoming holiday has had

a severe knock-on effect on equity markets, as well as throwing

the bond market into turmoil,' said David Buik, senior partner

at BGC Partners.

The FTSE 100 index has surged about 53 percent from a

six-year low hit in March, though it is still 2.6 percent below

its level of mid-September 2008 before the collapse of Lehman

Brothers.

Banks took the most points off the index, retreating after a

rise in the previous session, with Barclays, HSBC , Lloyds Banking Group and Royal Bank of

Scotland falling 1.9 to 3.5 percent.

Sentiment was hit after Dubai said on Wednesday two of its

flagship firms planned to delay repayment on billions of dollars

of debt as a first step toward restructuring Dubai World, the

conglomerate that spearheaded the emirate's breakneck growth.

London Stock Exchange, in which Borse Dubai has a

large stake, was a top faller, sliding 4.9 percent.

The mining sector also went into reverse, having enjoyed a

strong rally on Wednesday, under pressure as metals prices

dropped.

Anglo American, Fresnillo and Kazakhmys and Lonmin shed 1.5 to 2.9 percent.

BHP Billiton dismissed talk on Thursday that rival Rio Tinto

was baulking at a proposed $116 billion joint venture in iron

ore, insisting the two were close to a binding agreement.

BHP was off 1.4 percent, while Rio dropped 2.8 percent.

The energy sector was also on the back foot, impacted by a

1.1 percent fall in the crude price.

BG Group, BP and Royal Dutch Shell

declined 0.5 to 1 percent.



WATER FIRMS RALLY

Water companies were in demand, rallying after Thursday's

final price determination review from industry regulator Ofwat.

Severn Trent and United Utilities were among

a handful of gainers, putting on 5.2 percent and 2.5 percent,

respectively, with the latter rebounding after a decline on

Wednesday in the wake of its first-half results.

Britain's water companies were ordered on Thursday to freeze

water bills over the next five years, cheering consumers and

giving some relief to firms who were asked in a draft ruling to

cut bills by 4 percent.

Northumbrian Water and Pennon were features

on the midcap leader board after the news, rising 3.9 and 2.5

percent.

After Wednesday's revised second reading for the UK

third-quarter GDP numbers, there is little important data due

for release on Thursday, although the November CBI distributive

trades report could attract attention at 1100 GMT.

But trading is expected to tail off in the afternoon with

U.S. markets closed on Thursday for the Thanksgiving holiday.

(Editing by Mike Nesbit)

Keywords: MARKETS BRITAIN STOCKS * For related prices, Reuters Terminal users may click on - * UK stock report FTSE index: techMARK 100 index: FTSE futures: Gilt futures: Smallcap index: FTSE 250 index: FTSE 350 index: Market digest: Top 10 by vol: Top price gainers: Top % gainers: Top price losers: Top % losers: * For related news, click on - * UK hot stocks: Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report: * For company prices, click on - * Company directory: By sector: * For pan-European market data and news, click on - * Daily European stocks report........................ European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index................................... Top 10 STOXX sectors........................ Top 10 EUROSTOXX sectors................... Top 10 Eurotop 300 sectors.................. Top 25 European pct gainers.................... Top 25 European pct losers..................... Keywords: MARKETS BRITAIN STOCKS =2

(tricia.wright1@thomsonreuters.com; +44 207 542 8114; Reuters Messaging:tricia.wright1.reuters.com@reuters.net)

COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Next Article: European bank shares hit by Dubai jitters

Back to Finance News