Dec. 8 (Bloomberg) -- U.K. stocks declined, paced by Rio Tinto Plc after Deutsche Bank AG advised clients to trim their holdings of the world's third-biggest mining company.

Oil companies including BP Plc declined as crude-oil futures traded near a four-month low.

The benchmark FTSE 100 lost 23.80, or 0.5 percent, to 4705.10 as of 8:26 a.m. in London. The FTSE All-Share Index fell 10.62, or 0.5 percent, to 2349.55.

Rio Tinto fell 28 pence, or 1.9 percent, to 1,446 pence. Deutsche Bank cut its rating on the stock to ``sell'' from ``hold'', saying the share price already reflects investors' expectations for higher profits.

The bank also lowered its price target on Anglo American Plc, the world's No. 2 mining company, to 1,120 pence from 1,280 pence. The shares slipped 19 pence, or 1.6 percent, to 1,186 pence.

BP, Europe's largest oil company, slid 5.5 pence, or 1.1 percent, to 508.50 pence.

Oil prices fell on expectations warm weather and higher refinery production in the U.S. increased heating-oil supplies.

Crude oil for January delivery slid to $41.46 a barrel yesterday, the lowest closing price since July 26. Oil futures have declined 26 percent from a record of $55.67 on Oct. 25. The contract last traded at $41.72.

Cobham Plc, a U.K. maker of airliner components and midair refueling equipment, slumped 95 pence, or 6.6 percent, to 1,349 pence. The company said 2004 earnings are ``broadly in line'' with analysts' estimates.

Stagecoach Group Plc, Britain's third-largest bus and rail operator, jumped 4.75 pence, or 4.7 percent, to 105 pence. The company said first-half earnings increased 36 percent after it cut costs and reorganized the Coach USA division.

To contact the reporter on this story: Stephen Cunningham in London at Scunningha10@bloomberg.net

Last Updated: December 8, 2004 03:39 EST