U.K. Stocks Decline, Led by HSBC, RBS; Wolseley Shares Retreat

U.K. stocks had their biggest drop in one month, led by HSBC Holdings Plc and Royal Bank of Scotland Group Plc.

Wolseley Plc, slumped the most in five years after Goldman, Sachs & Co. and ABN Amro Holding NV advised their clients to sell the stock.

The FTSE 100 Index decreased 108.8, or 1.9 percent, to 5,667.6 at 12:22 p.m. The FTSE All-Share Index lost 1.9 percent, while Ireland's ISEQ Index slid 3.2 percent.

Stocks in Europe and Asia dropped after Carlyle Group's mortgage-bond fund said it will default on its remaining debt and the dollar slumped against the euro and the yen, dimming the earnings outlook for banks and automakers.

HSBC, Europe's biggest bank by market value, retreated 2.6 percent to 774.5 pence. RBS, the U.K.'s second-largest, decreased 4.5 percent to 342.75 pence.

Carlyle's fund, which received more than $400 million in margin calls since March 5, today said it was unable to reach an agreement with lenders. Through March 12, the company has defaulted on about $16.6 billion of debt, and any remaining debt is expected ``soon'' to go into default.

Wolseley, the world's biggest distributor of plumbing and heating equipment, sank 7 percent to 546 pence. It was today's worst-performing stock in the U.K.'s benchmark FTSE 100 Index.

``As construction markets in the U.S. and Europe weaken, we expect Wolseley's earnings to continue to decline,'' London- based Goldman Sachs analyst Andrew Grobler wrote in a note to clients dated yesterday. ABN Amro analyst John Messenger reduced his recommendation from ``hold'' in a note today.

The following stocks also rose or fell in U.K. and Irish markets. Stock symbols are in parentheses.

U.K. Companies:

Benfield Group Ltd. (BFD LN) decreased 40 pence, or 15 percent, to 219.75. The U.K. reinsurance broker said 2007 profit fell 4.6 percent as the slide in the dollar and falling rates eroded revenue.

Charter Plc (CHTR LN) lost 24 pence, or 3 percent, to 790.5. Europe's biggest maker of welding gear said it sees uncertainty on the outcome of U.S. asbestos lawsuits.

EcoSecurities Group Plc (ECO LN) slumped 25 pence, or 18 percent, to 115. The Dublin-based manager of projects that generate emission credits said its full-year loss widened following a failed contract and a gain in administrative expenses.

Investec (INVP LN) decreased 2 pence, or 6 percent, to 328.25. The South African money manager and investment bank says it's in talks with Silversands Ethanol to fund a possible ethanol gel plant that could cost as much as 1 billion rand ($126 million).

Premier Oil Plc (PMO LN) decreased 54 pence, or 3.8 percent, to 1,356. The U.K. explorer with projects in the North Sea, Asia and Africa said 2007 profit fell 42 percent after a charge related to hedging oil prices.

Irish Companies:

C&C Group Plc (GCC ID) slid 24 cents, or 5.7 percent, to 3.938 euros. The maker of Magners cider sold 33 percent less of the beverage in the U.K. in January compared with a year earlier as the company faced increased competition from brewers, analysts said.

CRH Plc (CRH ID) lost 92.6 cents, or 3.8 percent, to 23.6 euros. The world's second-biggest maker and distributor of building materials agreed to buy Texas-based Pavestone Group LP for $540 million in cash to expand in concrete landscaping products.

Horizon Technology Group Plc (HOR ID) soared 98 percent to 92 cents. The only computer-services company traded on the Irish stock exchange said it has been approached by a third party interested in buying the company for more than twice its market value.

Kerry Group Plc (KYG ID) added 25 cents, or 1.3 percent, to 18.85 euros. Ireland's largest food company agreed to buy Reox Holdings Plc's Breeo Foods unit for 165 million euros ($257 million), adding products such as Dairygold spread and Galtee bacon.