Britain's top share index retreated from a one-month high on Wednesday, with Wolseley's slumping after poor results and mining shares falling after metals prices dropped. The bluechip FTSE 100 index closed 0.6 percent lower at 6,191.93 points, a day after hitting its highest level since late April.
The UK mining index fell 1.9 percent as metals prices dropped following weak factory data from China and Europe. Shares in mining companies Rio Tinto, Antofagasta and Anglo American fell 1.3 to 3.8 percent. "Today's losses come after a raft of mixed data from across the globe. A more prominent bearish sentiment is now overpowering the hitherto bullish dominance that had ushered us to recent highs," said Mike van Dulken, head of research at Accendo Markets.
British heating and products supplier Wolseley dropped 5.5 percent, the biggest one-day percentage drop since September last year, after the company reported a slowdown in revenue growth for the third quarter, reflecting subdued demand in some markets. As a result, the company said, it would accelerate its restructuring in Britain and Europe. "Investors here are focusing on the short-term slowdown for demand that the company reported in this morning's update, rather than the overall progress that's being made despite the deflationary headwinds," Tony Cross, market analyst at Trustnet Direct, said in a note. British housebuilders were also in negative territory, with analysts citing Tuesday's ICM poll which indicated that British voters were leaning towards a vote to leave the European Union in a June 23 referendum. Shares in Persimmon, Berkeley Group, Barratt Developments and Taylor Wimpey fell 2.9 to 3.7 percent.
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