U.K. Stocks Drop for Second Day as RBS, Barclays Fall; Ocado Shares Plunge

U.K. stocks fell for a second day as banks retreated amid plans to separate their investment and consumer businesses and Fitch Ratings’ warned that it may downgrade France, Italy and Spain.
Lloyd Banking Group Plc, Royal Bank of Scotland Group Plc (RBS) and Barclays Plc (BARC) slid more than 3 percent as Chancellor of the Exchequer George Osborne pledged to pass laws by 2015 to force banks to split their investment and consumer units. Ocado Group Plc (OCDO) slumped 17 percent, the biggest slide on the FTSE 350 Index, as the U.K.’s biggest online-only grocer forecast profit that trailed analysts’ estimates.
The FTSE 100 index retreated 22.35, or 0.4 percent, to 5,364.99 at the close of trading in London, after earlier advancing as much 0.4 percent. The drop extends this year’s decline to 9.1 percent amid concern the euro-area debt crisis is hurting the global economy.
“Once again investors’ nerves have crumbled and the nine- day downtrend for the market has remained intact, with bankers and mining shares leading the way lower,” David Jones, David Jones, chief market strategist at IG Index, said in e-mailed comments. “Investors have the ever-present specter of European political procrastination regarding the debt situation to give them a reason to not hold positions for too long.”