May 11 (Bloomberg) -- The U.K.'s benchmark FTSE 100 Index fell for a third day as the Bank of England trimmed its 2005 growth forecast. Antofagasta Plc, an owner of copper mines, dropped with the price of the metal.

BP Plc, Shell Transport & Trading Co. and GlaxoSmithKline Plc, three of the six-biggest stocks in the FTSE 100 by weighting, declined as they began trading without rights to their latest dividends.

The FTSE 100 lost 17, or 0.4 percent, to 4875.4 in London. The FTSE All-Share Index also retreated 0.3 percent.

``There's quite clearly a lot of nervousness out there,'' said Finlay MacDonald, a fund manager at Britannic Asset Management in Glasgow, Scotland, which has about $20 billion under management.

The U.K. economy may expand around 2.6 percent this year, the Bank of England said today. In February, it forecast growth of 2.7 percent in 2005.

The central bank also said inflation will breach its 2 percent target this year, earlier than it had expected, before falling back in 2006, suggesting the bank is unlikely to move its benchmark interest rate any time soon.

Benchmarks pared some of their losses after a government report showed the U.S. trade deficit unexpectedly narrowed in March.

They earlier rallied after a report in China's People's Daily, a Communist Party-owned newspaper, sparked speculation that China will relax its currency link with the dollar next week. The paper later removed the story from its Web site, and indexes resumed their decline. A Chinese central bank spokesman said he hasn't had notice of any change.

Copper Slides

Antofagasta, the owner of three Chilean copper mines, fell 32.15 pence, or 2.8 percent, to 1,102. Copper futures fell for the first day in three in London amid concern that demand is slowing at a time of rising supply.

Copper for delivery in three months on the London Metal Exchange fell 1.2 percent. The contract has fallen 4.6 percent from the record $3,338 a ton reached on April 12.

Separately, Antofagasta traded without the right to a 20.9 pence dividend.

Corus Group Plc, Britain's biggest steelmaker, lost 1.25 pence, or 2.8 percent, to 43.25.

BP, Europe's largest oil company, sank 9.5 pence, or 1.8 percent, to 537 as the shares traded without rights to a dividend payment of 4.45 pence per share.

Shell, owner of 40 percent of the region's No. 2 oil producer, decreased 6.5 pence, or 1.4 percent, to 471 as buyers of the shares lost eligibility for a payment of 4.45 pence apiece.

Oil Drops

The oil stocks also slid as crude for June delivery fell as much as 1.7 percent to $51.20 a barrel in New York.

Glaxo, Europe's biggest drugmaker, slipped 7 pence, or 0.5 percent, to 1,328. Its most recent dividend payment is 10 pence a share. Rexam Plc, the world's largest beverage-can maker, also traded without the right to its latest dividend, declining 1.4 percent to 461.5 pence.

Dixons Group Plc, Britain's largest consumer-electronics retailer, added 3.75 pence, or 2.7 percent, to 145.25.

Chief Executive John Clare said he doesn't expect analysts to change profit estimates, even as a slowdown in U.K. consumer spending and falling prices depresses business. The shares had dropped 5 percent in March and 7 percent in April.

``Some people were expecting even worse news than they came out with. They have protected their margin to a certain extent,'' said David Bradbury, a fund manager in London with Canada Life Ltd., which oversees $5.5 billion.

``Trading is still tough and there's no indication it's going to get any better,'' he said.

Supermarkets Fall

Somerfield Plc, Britain's No. 5 supermarket operator, slipped 1 percent to 199 pence. Sales dropped at outlets open at least a year in the fiscal second half as competition among British food retailers intensified and customers spent less.

William Morrison Supermarkets Plc, Britain's fourth- biggest food retailer, fell 1.9 percent to 190.5 pence as Merrill Lynch & Co. said the company's Safeway business will remain unprofitable.

The following stocks made gains or losses. Symbols are in parentheses after the company names.

Bovis Homes Group Plc (BVS LN), U.K. homebuilder, fell 8 pence, or 1.3 percent, to 619.5. The company said first-half profit will decline as fewer homebuyers commit to purchases. The stock fell 3.4 percent. ``The slowing of the secondhand market is having a detrimental effect,'' the Longfield, southern England-based company said today. ``It remains too early to predict the U.K. housing market for 2005.''

Chrysalis Group (CHS LN), which owns London's Heart 106.2 FM radio station, fell 7 pence, or 5 percent, to 133. Analyst Polly Elvin at UBS AG cut her share-price target to 158 pence from 188 pence.

Dimension Data Holdings Plc (DDT LN), Africa's biggest computer-services company, rose 4.25 pence, or 13 percent, to 36.5 after it said first-half profit more than quadrupled, boosted by wider margins and higher sales in Africa and Asia. Net income for the six months ended March 31 rose $6.3 million from $1.4 million a year earlier, the company said in a statement to the Johannesburg stock exchange today.

Homestyle Group Plc (HME LN), which sells beds and furniture, dropped 4.5 pence, or 7.1 percent, to 59. The company said it's looking into raising a ``significant'' amount of money. It didn't provide further details.

John David Group Plc (JD/ LN), the U.K.'s second-largest sporting-goods retailer, dropped 12.5 pence, or 5.4 percent, to 218.5. The company's founders agreed to sell their stakes as part of an offer that values the business at 99.8 million pounds ($188 million). Pentland Group's Manchester Square Enterprises Ltd. is offering 211.2 pence a share for John David, 8.6 percent less than yesterday's closing price of 231 pence.

Lastminute.com Plc (LMC LN), the U.K.'s largest online travel business, surged 45 percent to 153 pence as the company said it received a takeover approach from an unidentified suitor. IAC/InterActiveCorp's Expedia, Cendant Corp. or Sabre Holdings Corp.'s Travelocity.com may be interested in the company, said Robin Chhabra, an analyst at Evolution Securities in London.

Sage Group PLC (SGE LN), Britain's biggest maker of accounting software, rose 3.25 pence, or 1.6 percent, to 205.25. Ariel Bauer, an analyst at ABN Amro, raised Sage's share-price estimate to 230 pence from 215 pence. The company yesterday said profit climbed 18 percent in the fiscal first- half after purchases of assets in the U.S. and Europe and small businesses upgraded technology systems.

Zetex Plc (ZTX LN), a U.K. designer of semiconductors products previously known as Telemetrix Plc, slumped 32 pence, or 25 percent, to 94.5. That's the lowest since August 2003. The company said trading conditions had changed since it updated investors on April 22, and it now expected 2005 sales may be as much as 5.3 million pounds lower than expected, leading to a 2 million pound drop in operating profit.

Zoo Digital Group Plc (ZOO LN), a maker of video games, sank to its lowest in a year after the company said it's considering raising about 3 million pounds ($5.7 million) in a share sale. The shares lost 1.75 pence, or 15 percent, to 9.75, the lowest since May 21, 2004.

The decline, the biggest since January 2004, takes this year's slide to 28 percent. Zoo Digital hasn't set a price for the sale.

To contact the reporter on this story: Sophie Hares in London at shares@bloomberg.net.

Last Updated: May 11, 2005 12:14 EDT