* FTSE 100 down 0.3 pct
* Sports Direct slides after founder sells shares in group
* ABF hit by profit warning at German rival
By Sudip Kar-Gupta
LONDON, April 8 Britain's top equity index fell
on Tuesday, with sportswear retailer Sports Direct
sliding sharply after its founder sold a chunk of shares in the
The blue-chip FTSE 100 index, which on Monday
suffered its worst one-day fall in a month, dipped 0.3 percent,
or 17.51 points, to 6,605.33 points in early session trading.
Sports Direct was the worst-performing FTSE 100 stock in
percentage terms, falling by 6.4 percent to 836.17 pence after
founder Mike Ashley sold 25 million shares.
A 4.1 percent fall at food and fashion conglomerate
Associated British Foods (ABF) also weighed on the FTSE,
with some traders attributing ABF's fall to a profit warning on
Tuesday by German sugar producer Suedzucker.
According to Thomson Reuters StarMine data, Associated
British Foods is on a price to earnings per share (P/E) ratio of
25.9 for the next 12 months - giving it a higher rating than
similar P/E ratios of 12.7 for rival Tate & Lyle and
18.3 for France's Danone.
JNF Capital investment manager Ed Smyth said he believed
ABF's rating was too high.
"We believe ABF is simply overvalued," he said.
The FTSE 100 rose 14.4 percent in 2013 to post its best
annual gain since 2009 and it reached a peak of 6,867 points in
January this year, near its best level since early 2000.
It has since slipped back amid a slump in emerging markets
and tensions between Russia and Western powers over Ukraine.
Smyth said he felt the FTSE's broader upward trend remained
intact, but Hantec Markets analyst Richard Perry was more
Perry said the fact that the FTSE had fallen below its
50-day and 200-day simple moving average levels - often used by
technical traders as a sign to sell on expectations of further
weakness - pointed to few gains in the near-term.
"At the moment, the FTSE is coming under a little bit of
pressure," he said.
(additional reporting by Alistair Smout; Editing by Gareth