London open: BP leads decline

London's leading shares spilled into the red in early deals, led by oil giant BP.Wednesday's plunge in the value of its US stock has shocked British oil giant BP into issuing a statement this morning claiming it knows of no reason for the dramatic sell-off. BP shares slumped 16% in heavy US trade as rumours did the rounds that the Gulf of Mexico oil disaster could force the business into bankruptcy, or at the very least cause it to axe the dividend. The cost of the spill has now reached $1.43bn (£982m).Home Retail Group complained of shoppers' reluctance to part with their cash in uncertain economic times as it reported a decline in like-for-like sales at both its Argos and Homebase stores in the 13 weeks to 29 May. Argos like-for-like sales were down by 8.1% on a year ago, while DIY chain Homebase, suffered a less painful 1.4%, decline.Electronic and industrial components supplier Premier Farnell issued a confident outlook for 2010 as quarterly profit more than doubled. Total profit before taxation rose to £22.2m in the three months to the end of April 2011 from £9m the year before. Revenue advanced 20% to £244.9m. Car parts and bicycle retailer Halfords said it is confident of future earnings growth despite the uncertain economic outlook after posting a sharp rise in profits and revenues in the year to April 2. Pre-tax profits climbed to £117.1m from £92.4m on revenues that were up to £831.6m from £794.7m. Britain's biggest coal miner UK Coal and energy sector support services group Hargreaves Services no longer intend to merge, the companies announced this morning. Hargreaves said that 'while recognising that UK Coal has many valuable assets, it does not intend to pursue such a merger.'Chapelthorpe showed profits for the first time in six years, triggering the polypropylene fibre manufacturer to recommence dividend payments in current financial year. Lower cost of sales and operating expenses helped the group post profits of £709,000 against the £3.3m loss last yearAvocet Mining rebuffed press speculation that it has sold its South East Asian mines and that the company itself was on the verge of being sold. The mining firm said these reports are "incorrect and without foundation." BP Halfords Home Reit