LONDON: UK stocks fell sharply on Tuesday, hindered by a drop in tobacco and commodity companies, but were still headed for its best quarterly gain since 2013 even as it ended March with a whimper.
The FTSE was down 115.11 points, or 1.7 percent, at 6,776.32 points at 1318 GMT but remained up 3.2 percent this year, heading for its biggest quarterly gain since the end of 2013.
Consumer staple stocks trimmed nearly 24 points off the blue-chip FTSE 100, weighed down by a 3.7 percent drop in Imperial Tobacco and a 2.8 percent fall in British American Tobacco.
The sector is concerned that a proposed merger of U.S. peers Reynolds and Lorillard might fall through. Imperial would acquire assets from Reynolds if the deal happens, while BAT has a stake in Reynolds.
Imperial Tobacco hit record highs earlier this month and is up 13 percent since the deal was announced.
“The possibility of regulatory intervention to this deal is affecting the sector, and makes the outlook more cautious,” said Chris Beauchamp, market analyst at IG.
