LSE: UK shares plunge the most since early July, mining companies retreat on weak manufacturing data

Shares in the United Kingdom marked the most considerable daily loss since early July on Friday, as a number of commodity-producing companies dropped, following a downbeat manufacturing data released out of China. The FTSE 100 Index fell 0.76%, or 50.93 points, to close at 6,679.18 in London. This has been the largest daily loss since July 8th. On a weekly basis, the UK benchmark dropped 1.66%, following two weeks of gains. The wider gauge, FTSE All-Share Index, lost 0.7%.

The index of manufacturing activity in China, released by HSBC Holdings Plc., rose at a slower than anticipated pace in July to reach a reading of 51.7. Preliminary estimates pointed to an advance to 52.0.

The gauge of manufacturing activity in the United Kingdom for July plunged to its lowest level this year, after a drop in new orders and output ended the first half’s “stellar growth spurt”, according to Markit Economics. The manufacturing Purchasing Managers Index fell to a reading of 55.4 last month from a revised down 57.2 in June, the official report by the Chartered Institute of Purchasing and Supply (CIPS) in cooperation with Markit revealed on Friday. Experts had projected a slowdown to 57.2 in July from a previously reported 57.5 in June. The gauge of new orders dropped to 57.8 in July from 60.6 in June.

Shares of United Utilities Group PLC (UU/:LN) fell the most within the FTSE 100 Index, losing 3.82%, or 34.000 GBp, to close at 856.000 GBp.

Severn Trent PLC (SVT:LN) lost 3.00%, or 58.000 GBp, to close at 1,877.000 GBp on Friday, which followed another 0.46% loss on Thursday.

Schroders PLC (SDR:LN), the largest publicly traded money manager in the United Kingdom, dropped 2.55%, or 61.000 GBp, to close at 2,329.000 GBp. On Thursday the stock lost another 4.36% on a daily basis. Schroders announced that its assets under management expanded 15% during the first half of the year, which came below forecasts of some experts.

Shares of the largest mining company in the world, BHP Billiton, declined 0.86%, or 17.50 pence, to close at 2,011.50 pence on Friday, marking a three-day loss of 4.08%. On a weekly basis, the stock plunged 3.38%, or the most considerable weekly loss since the week ended on May 30th.

Rio Tinto Group lost 1.11%, or 37.50 GBp, to close at 3,354.50 GBp, while shares of Glencore Xstrata Plc fell 1.08%, or 3.90 GBp, to close at 365.15 GBp.

Smith & Nephew PLC (SN/:LN) marked the largest daily gain within the FTSE 100, rising 3.80%, or 39.000 pence, to close at 1,065.000 pence. It announced a second-quarter revenue of 1.15 billion USD, which outpaced experts’ forecast for a revenue of 1.13 billion USD.

BG Group PLC (BG/:LN) gained 3.11%, or 36.500 GBp, to close at 1,208.500 GBp, while Royal Mail PLC (RMG:LN) added 10.700 pence, or 2.56%, to close at 428.100 pence, which made them respectively the second and third largest gainer within the FTSE.

Shares of International Consolidated Airlines Group SA (IAG:LN) rose 2.24%, or 7.400 pence, to close at 338.200 pence on Friday. The parent of British Airways announced a profit of 380 million EUR in Q2, exceeding projections pointing to a profit of 364 million EUR.