April 27 (Bloomberg) -- The U.K.'s benchmark stock index fell to its lowest since January. Kingfisher Plc, the world's third- largest home-improvement retailer, fell the most in more than two years after reporting declining sales.

Shares of Dixons Group Plc, Corus Group Plc and Reuters Group Plc also slipped.

The FTSE 100 Index slid 56.10, or 1.2 percent, to 4789.40, its second straight drop. About nine shares fell for each one that rose. The FTSE All-Share Index shed 1.2 percent to 2397.90.

Stocks extended declines after a government report showed orders for durable goods in the U.S. unexpectedly fell 2.8 percent in March, the biggest decline in more than two years, as demand for aircraft, cars and computers slumped.

Kingfisher plunged 17.75 pence, or 6.5 percent, to 254.25 pence, the most since Jan. 8, 2003. Sales dropped 6 percent in the first quarter at stores open a year or more, the company said. Higher interest rates and taxes cooled demand in the U.K., and total sales will be ``broadly flat'' for the quarter ending April 30, the company said.

Dixons, the U.K.'s biggest electronics retailer, slid 6 pence, or 4.1 percent, to 139 pence. GUS Plc, Britain's second- largest retailer by market value, dropped 2.6 percent to 848 pence. William Morrison Supermarkets Plc, Britain's No. 4 supermarket chain, slipped 2.5 percent, to 195 pence.

Reuters Drops

Reuters, the world's largest publicly traded provider of financial information, fell 13 pence, or 3.2 percent, to 393.75 pence. That was the biggest drop since November.

``Media stocks underperform a falling market,'' said Paul Richards, an analyst at Numis Securities in London. ``The current market outlook is pretty lackluster.''

He added that last Friday's announced sale of Instinet Group Inc., which is 62-percent owned by Reuters, probably did not contribute to today's drop.

Bloomberg LP, the owner of Bloomberg News, competes with Reuters in providing news, information, and trading systems to the financial services industry. Bloomberg Tradebook competes with Instinet in the business of matching stock trade orders.

Simon Baker, a media analyst at SG Securities, said some investors may be selling Reuters shares to lock in gains ahead of a strategic review expected from the company later this year. Reuters stock has added about a third since August.

Northern Rock Plc and T&F Informa Plc both slid as they traded without the right to a final dividend. Northern Rock, the U.K.'s eighth-largest bank, fell 3.5 percent to 756 pence. T&F, publisher of Lloyd's List shipping newspaper, dropped 3.9 percent to 397.75 pence.

The following stocks rose or fell. Stock symbols are in parentheses after the company names.

Amvescap Plc (AVZ LN), Europe's largest publicly traded money- management company, fell 6.25 pence, or 2 percent, to 308.25 pence. Net income fell 20 percent to 37.9 million pounds ($72.2 million) and Amvescap's clients withdrew $2.5 billion during the quarter, reducing fees, the company said.

Separately, Citigroup Inc. cut Amvescap shares to ``hold'' from ``buy''.

Corus Group Plc (CS/ LN), the U.K.'s biggest steelmaker, fell 3.5 pence, or 7.5 percent, to 43.25 pence. That was the biggest drop since Oct. 7, 2003. Steel-production growth will almost halve this year as mills in the European Union cut output to maintain prices threatened by higher-than-average stockpiles, U.K.-based industry consultant MEPS (International) Ltd. said.

Countrywide Plc (CWD LN) fell 32 pence, or 9.9 percent, to 290 pence. The U.K.'s biggest real-estate agency expects a first- quarter loss because the property market is ``subdued.'' The market remains ``fragile and volatile,'' and slowed in the second half of March, Countrywide said in a PRNewswire statement today.

Persimmon Plc (PSN LN), Britain's biggest homebuilder by market value, fell 27.5 pence, or 3.9 percent, to 677 pence. George Wimpey Plc (WMPY LN), the biggest by revenue, fell 11 pence, or 2.7 percent, to 394 pence.

Pillar Property Plc (PLL LN), the U.K.'s largest retail-park operator, rose 10 pence, or 1.4 percent, to 750 pence. Analysts at Merrill Lynch & Co. boosted their rating on the stock to ``buy'' from ``neutral.''

Egg Plc (EGG LN), a U.K. Internet bank, rose 3 pence, or 3.1 percent, to 99 pence. Egg reported a first-quarter profit after taking back some of the money set aside for the closure of its unprofitable French unit.

Elan Corp. (ELA LN), Ireland's biggest drugmaker, rose 11 pence, or 3.4 percent, to 3.38 pence. Tomorrow the company may outline plans to cut costs. The Feb. 28 withdrawal of its new Tysabri multiple sclerosis drug left analysts questioning Elan's ability to pay off debt.

To contact the reporter on this story: Christopher Fournier in Frankfurt at Cfournier3@bloomberg.net.

Last Updated: April 27, 2005 12:26 EDT