U.K. stocks dropped Wednesday, on track for a third straight losing session, as investors sorted through a raft of corporate earnings reports.
After a higher open, the FTSE 100 UKX, -0.22% turned lower by 0.1% to 6,337.21. Mining, health care and consumer-services sectors were in the red.
The worst performing shares were those of Pearson PLC PSON, -16.16% They tumbled 14% after the educational publisher cut its full-year guidance, in part following the disposal of PowerSchool, FT Group and The Economist Group. Pearson also warned of challenging market conditions. The shares were on track for their sharpest one-day decline since October 1987, according to FactSet data.
But topping the blue-chip index was ARM Holdings PLC ARM, +8.10% with shares of the Apple Inc. AAPL, -0.05% supplier charging up 8.8%. The chip designer reported a rise in third-quarter revenue and profit, boosted by demand for a new chip used in smartphones and digital TVs.
Movers: Trading lower was BHP Billiton Ltd. BLT, -0.91% BHP, -0.82% BHP, +1.00% with shares of the mining heavyweight down 1.5% as the company said it’s scaling back investment plans for its petroleum division this year, even after buying further prospective oil acreage in Australia and the Gulf of Mexico.
Outsourcing services provider Bunzl PLC BNZL, -2.33% said third-quarter revenue rose 4%, at constant exchange rates. Underlying revenue was at the same level as last year and in line with the previous three months. Its shares fell 1.7%.
But shares of Reckitt Benckiser Group PLC RB., +2.38% rose 2% after the maker of Durex condoms, Clearasil acne treatment and other consumer products raised its full-year like-for-like revenue forecast.
Sky PLC SKY, +3.09% shares gained 2.3% as the broadcaster reported a better-than-expected 10% rise in quarterly operating profit before exceptional items, a closely watched measurement of Sky’s main business performance.
Merlin Entertainments PLC MERL, +2.80% gained 1.7% as it and China Media Capital said they’re setting up a joint venture to develop a Legoland Park in the Shanghai area and explore other opportunities to develop visitor attractions in China.
Source: MarketWatch
