FTSE dips as BT and Unilever offset drugmakers

By Dominic Lau

LONDON (Reuters) - The leading share index dipped on Thursday as disappointing results from telecom group BT (BT.L) and food producer Unilever (ULVR.L) led their respective sectors lower, though drugmakers offered support.

AstraZeneca (AZN.L) advanced 3.3 percent after the drugmaker lifted its full-year earnings forecast as second-quarter results came in ahead of expectations.

Peer Shire (SHP.L) climbed 3.7 percent after it posted second-quarter results that topped analysts' expectations on sales of its older attention deficit disorder drug Adderall XR, and raised its sales forecast for the full year.

The FTSE 100 ended down 8.8 points, or 0.2 percent, at 5,411.9, after surging 1.9 percent on Wednesday.

On the downside, the telecommunications sector was one of the biggest losers after BT Group (BT.L) posted a lower-than-expected rise in its first-quarter underlying core earnings, resulting in a slump of 12 percent in its shares.

Sentiment was also hurt after mobile phone retailer and telecoms group Carphone Warehouse (CPW.L) cut its forecast for new broadband customers this year and said it remained cautious about the outlook for consumer spending. The stock was down nearly 2 percent.

Unilever (ULVR.L) sank 8.1 percent as traders reacted with disappointment to its second-quarter underlying sales.

Within the food producing sector, Associated British Foods (ABF.L) shed 1.4 percent and Cadbury (CBRY.L) lost 3.4 percent.