By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Most U.K. stocks declined Monday, with oil firms leading losses on the back of lower oil prices, while banks rallied after news of relaxed capital rules.
The FTSE 100 index UK:UKX -0.40% dropped 0.4% to 6,066.08, after closing at its highest level since February 2011 on Friday.
Shares of BP PLC UK:BP -0.98% BP +0.90% posted some of the biggest losses in the index, down 1%, as oil prices slipped below $93 a barrel.
Royal Dutch Shell PLC UK:RDSB -0.79% RDS.B +0.48% gave up 0.7%, while BG Group PLC UK:BG -0.96% shed 1%.
Mining firms were also on the decline. Fresnillo PLC UK:FRES -1.10% lost 1.1%, Antofagasta PLC UK:ANTO -1.27% gave up 1.3%, while heavyweights Rio Tinto PLC UK:RIO -1.22% RIO -0.34% AU:RIO -1.46% and BHP Billiton PLC UK:BLT -0.85% BHP +0.47% AU:BHP -0.26% fell 1.3% and 0.8%, respectively.
Shares of Anglo American PLC UK:AAL -0.27% slipped 0.3%. The mining firm is likely to appoint the head of rival AngloGold Ashanti Ltd. ZA:ANG -1.59% as its new chief executive, the Sunday Telegraph reported, citing an unnamed source. See: Anglo American may tap AngloGold chief as CEO: rpt
The broader losses for the U.K. index came as investors paused for breath after a strong rally in the new year on the back of a budget agreement in the U.S. to avert the fiscal cliff.
Banks, however, also rose on Monday. The Basel Committee on Banking Supervision on Sunday decided to delay the implementation of stricter capital requirements by four years.
Shares of Barclays PLC UK:BARC +3.72% BCS +0.73% gained 3.7% and Lloyds Banking Group PLC UK:LLOY +1.48% LYG +1.25% rose 1.3%.
Outside the main index in London, shares of Balfour Beatty PLC UK:BBY +0.42% gained 0.5%, after the infrastructure firm said it has received a contract to build a gas-fired power plant in Delaware. See: Balfour Beatty gets pact to build U.S. power plant.
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.
