* FSTE 100 down 0.4 pct in mid-session trade
* Remy profit warning hurts SAB Miller and Diageo
By Sudip Kar-Gupta
LONDON, Nov 26 Britain's benchmark equity index
fell on Tuesday, pulled down by major drink stocks such as SAB
Miller and Diageo on signs of slowing consumer
demand in China.
Nevertheless, many traders still said any weakness in the
stock market in November would be followed by a rally in
December that could push the index back to its 2013 peaks.
The blue-chip FTSE 100 index was down by 0.4
percent, or 29.08 points, at 6,665.54 points in mid-session
SAB Miller and Diageo together took the most points off the
FTSE 100 after a profit warning at French peer Remy Cointreau
, which slumped 11.7 percent after warning of a
slowdown in China.
"The Remy Cointreau warning is telling you that China is
slowing, and while Diageo said everything was fine when their
own numbers came out, a week or so ago they took a slightly more
cautious stance," said Nick Xanders, who heads up European
equity strategy at BTIG.
"The beverage space is really tough, and it's those names
that are underperforming the broader market," he added.
The FTSE 100 remains up by 13 percent since the start of
2013. It reached a 5-month peak of around 6,800 points in late
October and had earlier hit a 13-year peak of 6,875.62 points in
APS Alpha technical strategist Adrian Slack said the FTSE
100 would recover to rise in December.
Slack said the FTSE should be able to get back to the 6,800
level in December and added that if it rose above that, it could
then challenge the 7,000 point level by the end of 2013, which
would represent an all-time high for the index.
"There should be a bit of a rally into the year-end. There's
still money to come in at the sidelines," he said.