June 30 (Bloomberg) -- The U.K.'s benchmark FTSE 100 Index dropped, led by shares of HSBC Holdings Plc and Wolseley Plc.

The FTSE 100 lost 6.7, or 0.1 percent, to 5102.4 as of 8:04 a.m. in London. The FTSE All-Share Index slid 0.1 percent to 2553.99.

HSBC, Europe's biggest bank by market value, dropped 8 pence, or 0.9 percent, to 877 pence. Morgan Stanley lowered its recommendation of the shares to ``underweight'' from ``equalweight.''

Wolseley, the world's biggest distributor of plumbing and heating equipment, fell 8 pence, or 0.7 percent, to 1173 pence.

To contact the reporter on this story: Sharon Smyth in Madrid at ssmyth2@bloomberg.net.

Last Updated: June 30, 2005 03:16 EDT