By Shashank Nayar
(Reuters) - London's FTSE 100 fell on Tuesday, weighed by insurance and mining stocks, with Lysol maker Reckitt Benckiser adding to the pressure as it missed quarterly sales estimates.
Reckitt dropped 7.3% to its lowest since March 2020, after posting disappointing sales growth and warning on margins as costs rise and easing lockdowns slow demand for products such as Lysol disinfectants.
"The market has realised that they are a little over exposed to companies like Reckitt and its peers that were on the front line during the pandemic last year," said David Madden, analyst at Equiti Capital.
"All of a sudden there is a realization the kind of rush for their products could not be as much as last year which is leading some investors pull out."
The FTSE 100 dropped 1% to 6961.96 points by 0840 GMT, with life insurers and base metal miners being among the top losers, both down nearly 1.5%.
Rio Tinto (LON:RIO) was the second-biggest percentage loser on the blue-chip index, down 2.3%, after the miner said late on Monday that it planned to cut production at its aluminium smelter in Canada due to union strikes.
The FTSE 100 has recovered nearly 25% since its October lows, when the country battled a deadly second wave of COVID-19 infections on support from dovish central bank policies.
However, the blue-chip index is still 12% away from its record high and has significantly underperformed its European and U.S. peers.
The mid-cap FTSE 250 index eased 0.7% on Tuesday.
Among other stocks, British online greeting card publisher Moonpig tumbled 6.3% even after it said its annual revenue and adjusted earnings more than doubled in its maiden set of results as a listed company.
Daily Mirror publisher Reach Plc gained 7.7% after it said it was trading ahead of expectations and that it expects the strong momentum to continue.
British transport company FirstGroup fell 1.3% after its Chief Executive Matthew Gregory said he planned to step down in September, a day after the company's biggest shareholder demanded his resignation.