May 20 (Bloomberg) -- U.K. stocks fell, as Rio Tinto Plc led a decline in mining companies amid concern the rising oil price will slow economic growth and hurt profits. British Airways Plc also paced the slide.

The benchmark FTSE 100 Index slipped 34.7, or 0.8 percent, to 4437.10 as of 9:35 a.m. in London. The FTSE All-Share Index lost 15.77, or 0.7 percent, to 2201.45.

Rio Tinto, Antofagasta Plc and Xstrata Plc were among mining companies that fell on speculation that higher oil prices will damp economic activity, hurting commodity prices and earnings. Crude-oil futures rose after an Energy Department report yesterday showed U.S. stockpiles of gasoline increased by less than forecast.

``Oil prices will cause inflation and reduce overall growth,'' said Julian Cane, who manages about $325 million of assets at Foreign & Colonial Asset Management in London. ``It's negative for the market.''

Crude oil for June delivery climbed 12 cents to $41.62 a barrel on the New York Mercantile Exchange. Oil prices climbed to a record $41.85 on Monday amid concern about supply disruptions in the Middle East and U.S. fuel shortages. Brent crude oil for July settlement was up 15 cents, or 0.4 percent, to $38.05 a barrel on London's International Petroleum Exchange at 9:35 a.m.

Rio Tinto, the world's third-largest mining company, dropped 24 pence, or 1.9 percent, to 1,258. Antofagasta, which runs three copper mines in Chile, slipped 14 pence, or 1.6 percent, to 884. Xstrata, the world's No. 4 coal exporter, fell 7 pence, or 1.1 percent, to 662.

The FTSE 350 Mining Index was the second-worst performing industry group in the FTSE 350 Index, falling 1.5 percent.

British Airways, Europe's second-largest carrier, slipped 6 pence, or 2.3 percent, to 257. Fuel makes up as much as 16 percent of a carrier's costs, according to March data from Aviation Economics, a London-based consultancy firm.

The following stocks are making gains or losses today. Stock symbols are in parentheses after company names.

Bradford & Bingley Plc (BB/ LN), which provides one quarter of buy-to-let mortgages in the U.K., fell 11.25 pence, or 4 percent, to 272.5 after Morgan Stanley cut its share-price forecast by 16 percent to 247 pence. The brokerage has an ``underweight'' recommendation on the stock.

The shares advanced 6.5 percent yesterday, the biggest gain in more than a year.

BT Group Plc (BT/A LN), the U.K.'s former telephone monopoly, added 4 pence, or 2.3 percent, to 177.5 after saying fiscal fourth-quarter sales were little changed from the year-ago period at 4.79 billion pounds ($8.5 billion), halting a decline that had lasted three quarters. The median estimate of five analysts surveyed by Bloomberg News expected revenue to fall to 4.61 million pounds.

The company also said net income in the three months through March dropped 82 percent from the year-ago period to 303 million pounds after a gain from an asset sale wasn't repeated.

Royal & Sun Alliance Insurance Group Plc (RSA LN), Britain's second-largest property and casualty insurer, shed 1.5 pence, or 1.9 percent, to 78.25 after Citigroup Inc. cut its recommendation on the shares to ``sell'' from ``hold.'' The brokerage also reduced its stock-price estimate by 19 percent to 73 pence.

SABMiller Plc (SAB LN), the world's second-largest brewer, climbed 22.5 pence, or 3.6 percent, to 643.5. The company said fiscal-year net income more than doubled from a year earlier to $645 million as the rand's gain against the dollar increased South African earnings and a U.S. trend for low-carbohydrate dieting boosted demand for Miller Lite. The median forecast of seven analysts surveyed by Bloomberg News predicted earnings of $556 million.

J Sainsbury Plc (SBRY LN), the U.K.'s third-largest grocery chain, fell 2.5 pence, or 0.9 percent, to 272.25 after Morgan Stanley cut its recommendation on the stock to ``underweight'' from ``equal-weight,'' and gave a share-price estimate of 249 pence.

To contact the reporter on this story: Kotaro Miyata in London at kmiyata2@bloomberg.net.

Last Updated: May 20, 2004 04:55 EDT