U.K. Stocks Drop, Led by Land Securities, Bradford & Bingley

By Sarah Jones

June 21 (Bloomberg) -- U.K. stocks fell for a fourth day, led by Land Securities Group Plc and DSG International Plc, among companies that are most sensitive to higher interest rates.

Bradford & Bingley Plc led a decline by banks, while Antofagasta Plc fell with the price of copper.

The benchmark FTSE 100 Index lost 53.3, or 0.8 percent, to 6596 in London. The FTSE All-Share Index fell 0.9 percent. Ireland's ISEQ Index dropped 1.7 percent to 9501.92.

Minutes published yesterday of the Bank of England's June meeting showed policy makers narrowly defeated Governor Mervyn King's bid to raise rates, adding to speculation of an increase as soon as July. Inflation, at 2.5 percent in May, has exceeded the central bank's 2 percent target for 13 months.

``Banks, property, builders and retailers are all affected by interest-rate machinations,'' said David Buik, an analyst at BCG Partners in London. They have ``taken the market lower.''

Source:
http://www.bloomberg.com/apps/news?pid=20601102&sid=a4Nik3pW1kro&refer=uk