By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Heavyweight bank HSBC Holdings PLC led
U.K. stocks south on Monday after a disappointing earnings report,
while mining firms trended lower amid concerns about China's
property market.
The FTSE 100 index dropped 0.4% to 6,814.18, on track to break a
six-day winning run.
Shares of HSBC (HSBC) lost 3.7% after the banking major posted a
profit that fell short of expectations. Full-year 2013 pretax
profit for the bank rose 9% to $22.56 billion, compared with $20.65
billion a year ago. A consensus forecast of analysts polled by
Bloomberg News called for a profit of $24.6 billion.
Shares of RSA Insurance Group PLC gave up 2.6% after the company
scrapped plans to raise emergency funds through a small group of
investors and instead will press ahead with a cash call for at
least 500 million pounds ($831 million) to be asked of all
shareholders, according to The Times.
On a sector basis, mining firms posted some of the biggest
losses on renewed concerns about a tightening in the Chinese
property market. Stubbornly high property prices have triggered
worries that a fresh round of market curbs by Beijing is looming.
Adding to those fears, Chinese local media said a medium-sized bank
has tightened its financing to property developers because of
heightened risk.
Miners are sensitive to China's construction sector as the
country is a major user of natural resources. Shares of Rio Tinto
PLC (RIO) dropped 1.5%, Anglo American PLC lost 1.5%, Antofagasta
PLC fell 1.2%, and BHP Billiton PLC (BHP) gave up 0.7%.
On a more upbeat note, shares of Vodafone Group PLC (VOD)
rallied 7.7% as a share consolidation following the sale of its
Verizon Wireless stake became effective.
Shares of Bunzl PLC picked up 5.2% after the distribution and
outsourcing company reported an 8% rise in 2013 earnings per
share.
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