By Carla Mozee, MarketWatch

CRH shares drop in London trade as Holcim/Lafarge deal falters

LONDON (MarketWatch) -- U.K. stocks bounced back Monday, following last week's bruising round of losses for the benchmark FTSE 100.

The FTSE 100 rose 0.4% to 6,765.13, with consumer-goods and services and financial shares leading advances. Supermarket chain Tesco PLC popped up 3.1% and rival J Sainsbury PLC climbed 2.1%, and apparel retailer Next PLC gained 1.9%. A trading update from Sainsbury is due Tuesday, and preliminary full-year results are due from Next on Thursday.

Most mining stocks were higher following a pledge by Chinese Premier Li Keqiang over the weekend that the government will ramp up efforts to bolster economic growth (http://www.marketwatch.com/story/china-signals-fresh-moves-for-economy-2015-03-15-124854757) if slowing in the economy affects employment and incomes. China is a key market for metals producers. Diversified miner BHP Billiton PLC (BHP) tacked on 1.3% and Randgold Resources PLC gained 1.1% but Glencore PLC fell 0.7%. Shares of Antofagasta PLC edged up 0.4%, with full-year results from the copper miner due Tuesday.

But shares of building materials group CRH PLC dropped 3.4% as a proposed EUR42 billion ($44.27 billion) merger between Holcim Ltd. and rival cement giant Lafarge SA appeared on the verge of collapse (http://www.marketwatch.com/story/holcim-board-rejects-terms-of-proposed-4427-billion-larfarge-merger-2015-03-16). CRH had agreed to purchase some assets from the companies.

Oil and gas shares were mixed as prices for U.S. oil (CLJ5) and Brent crude fell, with worries about a growing supply glut (http://www.marketwatch.com/story/oil-extends-losses-us-crude-drops-below-45-a-barrel-2015-03-16) gripping the market. Investors appeared to set aside a forecast from the Organization of the Petroleum Exporting Countries that U.S. oil production could start to fall by the end of the year.

Shares of oil major BP PLC (BP) were off 0.5% while BG Group PLC gained 0.7%. Shares of oil producer Tullow Oil PLC fell 5.3% to the bottom of the FTSE 100. Tullow is losing its spot on the blue-chip index as the slide in oil prices contributed to a drop in the company's market capitalization. The shares will move to the FTSE 250 index at the end of trade Friday.

Last week, the FTSE 100 fell 2.5% (http://www.marketwatch.com/story/utilities-fall-in-london-trade-ftse-100-facing-weekly-loss-2015-03-13), its biggest weekly loss since December, in part as mining and energy shares were driven lower as a surge in the dollar (DXY) against its rivals hurt dollar-denominated commodities.

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