U.K. Stocks Decline as Four-Day Rally in Miners Comes to an Endby
U.K. commodity producers snapped their biggest four-day surge since July, helping send the FTSE 100 Index lower.
Polymetal International Plc led losses, down 7.9 percent after its holders said they plan to sell about 26 million of its shares. Precious-metal producers Fresnillo Plc and Randgold Resources Ltd. also dropped. Homebuilders bucked the trend, with Persimmon Plc rising 3.5 percent after Liberum Capital upgraded the stock and said the industry’s 2016 trading is holding up well. Barratt Developments Plc and Taylor Wimpey Plc gained 1 percent or more.
The FTSE 100 fell 0.4 percent at 8:42 a.m. in London. The benchmark rose for the past four sessions, boosted by miners amid optimism central banks will stay supportive of global growth. It’s poised for a weekly gain of 2.6 percent, the most since July.
The broader FTSE All-Share Index lost 0.3 percent today, falling from near a one-year high. While a surge in the gauge has subsided following the initial boost from a post-Brexit plunge in the pound, analysts have kept on raising profit-growth estimates for its members. That’s pushed its valuation to the lowest in seven months relative to the Euro Stoxx 50 Index.