Aug. 18 (Bloomberg) -- U.K. stocks mining shares, among recent months' best performers, fell after BHP Billiton Plc posted profit that lagged analysts' estimates.

``We are in a bull market for metals, but there might have been some over-optimism as well,'' said Mike Bayer, who helps manage $310 million at Ceros Vermoegensverwaltung in Frankfurt. ``There is room for some correction.''

Reuters Group Plc, the world's largest publicly traded provider of financial information, led gains on the benchmark FTSE 100 Index after analysts at Credit Suisse First Boston advised investors to buy the shares.

Rentokil Initial Plc, the biggest pest-control business, slid on reports that it won't sell two units. British Airways Plc fell as the airline faced a possible staff strike.

The FTSE 100 dropped 5.8, or 0.1 percent, to 4352.9 as of 4:07 p.m. in London. The FTSE All-Share Index also fell 0.1 percent, to 2160.86.

Declines were also led by stocks that started trading today without the right to their latest dividends, including Anglo American Plc, the world's second-biggest mining company, and Barclays Plc, Britain's third-largest bank.

BHP Billiton, the worlds' biggest miner, shed 7.5 pence, or 1.4 percent, to 516.5. The company said fiscal full-year net income climbed 78 percent to $3.38 billion from the year- earlier period, as soaring Chinese demand boosted prices for iron ore, copper and other raw materials. Analysts expected profit of $3.43 billion, according to the median estimate of eight surveyed by Bloomberg News.

Steel and Metals Stocks

The FTSE All-Share Steel & Other Metal Index is the best performer in 2004 among 34 industry groups on the broader benchmark. It has gained 44 percent this year. The mining index is up 13 percent since the beginning of May.

Rio Tinto Group, the world's third-biggest mining company, shed 19 pence, or 1.4 percent, to 1,370.

Bank of England policy makers voted unanimously to raise the benchmark interest rate by a quarter point earlier this month, in a move to check inflation, according to the minutes of the Monetary Policy Committee meeting.

The nine-member MPC raised the benchmark rate to 4.75 percent, the fifth quarter-point increase since November.

The following stocks are also making significant gains or losses in London today. Symbols are in parentheses after the company name.

Anglo American Plc (AAL LN), the world's second-biggest mining company, fell 9 pence, or 0.7 percent, to 1,247. Investors who buy the shares today won't receive a net dividend of $0.19 per share on Sept.21.

Barclays Plc (BARC LN), Britain's third-largest bank, dropped 9.75 pence, or 1.9 percent, to 514.25. HSBC Holdings Plc (HSBA LN), Europe's No. 1 bank by market value, fell 4.5 pence, or 0.5 percent, to 821.5. The two lenders are also among stocks that start trading without the right to a dividend payment.

BPP Holdings Plc (BPP LN) shed 8.5 pence, or 2.9 percent, to 286. The U.K. owner of London's BPP law school said first- half profit fell 5 percent after fewer students took its financial-services courses. Revenue rose 3.4 percent to 57.6 million pounds ($105 million) and the company raised its dividend 9 percent to 4.8 pence.

British Airways Plc (BAY LN) lost 6.5 pence, or 2.9 percent, to 214.75. Europe's second-largest airline, faces an increased strike threat by baggage handlers and check-in staff after the carrier's biggest union voted in favor of a walkout to protest stalled pay talks.

The Transport & General Workers' Union members may join the GMB Union, which is planning strikes over the August holiday weekend starting Aug. 27.

Bunzl Plc (BNZL LN), a maker of food packaging for clients such as Wal-Mart Stores Inc., dropped 7.25 pence, or 1.7 percent, to 419. Analysts at Deutsche Bank AG advised clients to trim their holdings of the stock.

Collins Stewart Tullett Plc (CSTL LN), a London-based brokerage, jumped 20.75 pence, or 6 percent, to 367.25. was cleared by Britain's financial regulator on allegations made by former employee James Middleweek.

Middleweek, the former analyst who's suing the firm for wrongful dismissal, had claimed Collins Stewart boosted share prices and engaged in insider trading.

CRC Group Plc (CCG LN), which mends mobile phones, jumped 18 pence, or 13 percent, to 156. It won a contract to be the sole repairer of mobile phones in the U.K. for Vodafone Group Plc, the world's largest wireless operator.

Hiscox Plc (HSX LN), a Lloyd's of London insurer, fell 1.5 pence, or 0.9 percent, to 168. The company said the amount of business it will be able to write next year will decline 15 percent because of the weakness of the U.S. dollar against the pound and falling insurance rates.

John Wood Group Plc (WG/ LN) declined 1.5 pence, or 1.3 percent, to 115.5. The U.K. oilfield-services provider had its shares cut to ``underweight'' from ``neutral'' by analysts at JPMorgan Chase & Co. In a note to investors, they cited concern about a ``slow recovery'' in the company's gas-turbines services business.

Rentokil Initial Plc (RTO LN), the biggest pest-control company, dropped 4.5 pence, or 2.9 percent, to 152.5. The Financial Times reported that it has decided not to sell its conferences and parcel-delivery units. Some analysts and investors have said the two units don't fit with the company's cleaning and hygiene activities and should be sold, the FT said.

Rentokil will make no comment on strategy before it releases its earnings figures, said Jonathan Rhodes, an external spokesman for the company.

Reuters Group Plc (RTR LN), the world's largest publicly traded provider of financial information, added 6.75 pence, or 2.2 percent, to 312.25. Analysts at Credit Suisse First Boston started coverage of the stock with an ``outperform'' recommendation, meaning they expect the shares to perform better than the market in coming months.

Symphony Plastic Technologies Plc (SYM LN), a maker of materials for packaging and shopping bags, rose 1 pence, or 7.6 percent, to 14.25. The company won a 750,000-pound contract to supply aprons and other polythene products to hospitals across Northern Ireland.

Tullow Oil Plc (TLW LN) rose 2.75 pence, or 2.3 percent, to 121.75. Shares of the oil and gas producer will join Europe's Dow Jones Stoxx 600 Index on Sept. 20, the index compiler said yesterday, luring some of the money from fund managers that track the benchmark. About 5.3 billion euros ($6.54 billion) track the Stoxx 600, according to Citigroup Inc. estimates.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.

Last Updated: August 18, 2004 11:28 EDT