By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- The U.K. stock market ended in positive
territory, spurred by optimism over better-than-expected data from
the eurozone on Thursday.
Despite the upbeat sentiment, Tesco PLC shares slumped on
Thursday after a profit update.
The FTSE 100 index rose 0.3% to 6,419.15, extending gains into a
third straight day. The benchmark opened in negative territory, but
tracked its European peers higher after data showed the eurozone
manufacturing sector is expanding at a faster-than-expected pace in
October.
Falling to the bottom of the London index, shares of Tesco
(TSCDY) sank 6.6% after the supermarket chain said an investigation
into its accounting practices showed the profit forecast for the
first half had been overstated by 263 million pounds ($422
million). In September, the company said the accounting error was
GBP250 million. Chairman Richard Broadbent will now step down,
Tesco said.
Other supermarkets tracked Tesco lower, with shares of Wm
Morrison Supermarkets PLC and J Sainsbury PLC down 3% and 1.8%,
respectively
Shares of Unilever PLC (UL) dropped 3.7%. The maker of Magnum
ice cream and Dove shampoo, among other things, said sales growth
slowed in the third quarter and warned of a tough outlook.
Mining firms were also on the decline in London, as metals
prices were mixed. Shares of Rio Tinto PLC (RIO) lost 0.9% and BHP
Billiton PLC (BHP) fell 0.4%. Anglo American PLC gave up 1.2%,
despite reporting a rise in iron-ore production.
On a more upbeat note, shares of GlaxoSmithKline PLC (GSK) rose
2.5% after Barclays lifted the drug maker to overweight from equal
weight.
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