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FTSE 100 on track to break winning streak
MARKETWATCH — LAST UPDATE: 09:37 12/04/2013

LONDON (MarketWatch) -- U.K.'s benchmark stock index was on track to break a four-day winning streak on Friday, as banks declined and oil firms tracked oil prices lower.

The FTSE 100 index lost 0.4% to 6,388.59, after posting the best four-day performance since early January.

Posting one of the biggest losses in the index, shares of Legal & General Group PLC (LGGNF.NaE) gave up 2.3%, after J.P. Morgan Cazenove cut the insurance firm to underweight from neutral, worried about a lack of catalysts to drive the share price higher from here.

Shares of Croda International PLC (COIHF.NaE) dropped 2.8%, as UBS cut the chemicals firm to sell from neutral.

Another chemicals firm, Johnson Matthey PLC (JMPLF.NaE) benefited from a ratings change, rising 2.2%, after UBS lifted the company to buy from neutral.

Among sectors on the decline, oil firms tracked oil prices lower. Shares of BP PLC (BP.NaE) dropped 0.5%, BG Group PLC (BRGXF.NaE) shaved off 0.5% and Royal Dutch Shell PLC (RDS/A.NaE) inched 0.1% lower.

Banks also put in weak performances, with Royal Bank of Scotland Group PLC (RBS.NaE) down 2.1%, Lloyds Banking Group PLC (LYG.NaE) off 1.5% and Barclays PLC (BCS.NaE) 1.5% lower. Heavyweight HSBC Holdings PLC (HBC.NaE) slipped 0.8%.

The losses in London came even as analysts at Exane BNP Paribas encouraged investors to move into the British equity space. The FTSE 100 is up 8.3% year-to-date, thus outperforming other major indexes in Europe, and 'we see further market progress through Q2, as the global liquidity picture continues to fuel asset price inflation,' the analysts said.

'The FTSE's outperformance of the major European bourses this year reflects more than a simple FX adjustment. Of course weaker sterling buoys earnings generated overseas, but this does not explain market leadership,' they said.

'Investor preference for 'U.K. domestics' may reflect growth concern abroad, but it is the improved position of the U.K. households that is likely to be the more important factor,' they added.

Outside the main index in London, shares of William Hill PLC (WIMHF.NaE) lost 1.1%, after Deutsche Bank cut the online-betting firm to hold from sell, citing potential headwinds from U.K. gross profit tax on online revenues and weak underlying retail trends.