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Britain's FTSE set for fourth straight weekly loss
May 13, 2016 / 11:00 AM / 2 years ago

Britain's FTSE set for fourth straight weekly loss

* FTSE 100 down 0.5 pct

* Inmarsat hit by Eutelsat outlook cut

* Coca-Cola HBC falls after forex hits revenues

* ITV extends previous session’s losses (Updates prices, adds details and quote)

By Kit Rees and Alistair Smout

LONDON, May 13 (Reuters) - Britain’s top share index fell on Friday and was set for its fourth straight weekly loss, with Inmarsat the top faller on concerns about the outlook for satellite stocks.

Britain’s FTSE 100 fell 32.34 points, or 0.5 percent, to 6,071.85 by 1044 GMT, down for a second straight session and dropping below its 50-day moving average.

The index is down 0.9 percent this week, set for its fourth straight week of losses. It is down 5.5 percent from highs hit in mid-April.

Shares in Inmarsat fell 6.8 percent, the top faller on the index, after an outlook cut from sector peer Eutelsat sent its shares more than 30 percent lower.

The stock is down over 20 percent since it cut its own full-year outlook on May 5.

“Now people are beginning to worry that there is more to come within the sector. The read-across is showing that it wasn’t just a one-off issue for Inmarsat, but there are broader problems which will flow through the whole sector,” said Chris Beauchamp, market analyst at IG.

Bottling firm Coca-Cola HBC fell 5.4 percent after adverse currency movements hit its revenue, although underlying trends improved in its established emerging markets.

“Pricing trends were soft in the quarter but developing markets are improving and there is encouraging volume growth in both emerging and developing markets,” Russ Mould, investment director at AJ Bell, said in a note.

Broadcaster ITV was among the top fallers, down 3 percent and extending its losses from the previous session as brokers including Deutsche Bank, Barclays, JP Morgan, Citigroup and UBS cut their price targets on the stock.

ITV cut its advertising revenue forecast on Thursday, saying that companies were holding back from buying advertising in the buildup to next month’s European Union referendum in Britain.

“The ad outlook ... is even worse than expected. Consensus should be cutting FY‘16, but also needs to start thinking further out. This is not a temporary Brexit blip,” Laurie Davison, research analyst at Deutsche Bank, said in a note.

Fresnillo was among the top risers on the index, up 2.1 percent as gold rebounded from recent falls.

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Mike Dolan, Markets Editor EMEA. (Reporting by Alistair Smout; Editing by Andrew Roche)

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