U.K. mining stocks dropped, led by Rio Tinto Group and BHP Billiton Ltd. on concern that a slowdown in economic growth in the U.S. may damp demand for commodities.

HSBC Holdings Plc, Europe’s biggest bank, led advancing shares after its Chinese partner Bank of Communications Ltd. said HSBC plans to increase its stake. IMI Plc, the world’s biggest maker of pneumatic controls, rose on speculation that Honeywell International Inc. may make a takeover bid.

Bovis Homes Group Plc led homebuilders lower after earnings declined and the company said prices won’t improve this year.

The benchmark FTSE 100 Index rose 11.5, or 0.2 percent, to 5,711.4 at 1:23 p.m. The FTSE All-Share Index gained 0.1 percent, while Ireland’s ISEQ Index added 0.5 percent.

In the U.S., “the most recent economic figures and comments are beginning to point towards a recession,” said Richard Hunter, head of U.K. equities at Hargreaves Lansdown Stockbrokers in London. This could “have an impact on the developing world in terms of demand for commodities.”

Rio Tinto, the world’s third-biggest mining company, slumped 4.2 percent to 5,321 pence. BHP, the largest mining company, lost 4 percent to 1,526 pence.

Copper, lead, nickel, tin and zinc prices all fell in London. A report on March 7 showed the biggest drop in jobs in five years adding to signs of economic weakness.

Bovis Homes

Bovis Homes, the U.K.’s most profitable homebuilder, slumped 10 percent to 520 pence, the most since July 2007, after saying full-year profit declined 8.6 percent to 86.9 million pounds ($175 million).

“The order book and trading commentary is clearly the most cautious so far,” Mark Hake, a London-based analyst at Merrill Lynch with a “neutral” rating on the stock, said in a note today. “Bovis has always been very reluctant to concede on selling price to secure a deal, so therefore they will be struggling more than most in the current market.”

Persimmon Plc, the U.K.’s largest homebuilder by market value, lost 3.2 percent to 685 pence. Taylor Wimpey Plc, Britain’s biggest homebuilder by sales, fell 4.6 percent to 164.7 pence.

HSBC climbed 2 percent to 774 pence. Bank of Communications said its partner HSBC applied to the Chinese regulator to raise its stake in the nation’s fourth-largest bank by market value to 40 percent.

IMI surged 5.7 percent to 451.25 pence on speculation that Honeywell International Inc. may make a takeover bid.

“IMI is up on bid rumors with talk that Honeywell could be looking at the company,” Jawaid Afsar, a trader at Securequity Ltd. in Sheffield, England, said by e-mail today.

Stephanie Badjonat, an external spokeswoman for IMI, was not immediately available to comment.

The following stocks also rose or fell in the U.K. markets. Stock symbols are in parentheses.

U.K. Companies:

Amec Plc (AMEC LN), Europe’s biggest engineering adviser to energy and mining companies, dropped 9 pence, or 1.1 percent, to 779.5 pence after UBS AG downgraded the stock to “neutral” from “buy” on concern that the company may miss earnings targets.

“The group is unlikely to achieve the 2010 earnings target on an organic basis,” UBS analysts including London-based Alex Brooks wrote in a note to clients today. The targets are too high, the analysts said.

Burberry Group Plc (BRBY LN), the maker of $3,100 metal- studded Knight handbags, rose 27.25 pence, or 6.3 percent, to 462.25 on speculation the luxury brand may be bought. A Burberry spokesman declined to comment today.

Imperial Tobacco Group Plc (IMT LN), Europe’s second-biggest cigarette maker, added 34 pence, or 1.5 percent, to 2,378. Autogrill SpA, the biggest manager of airport restaurants, will buy Imperial Tobacco’s 49.95 percent stake in Aldeasa SA for 275 million euros ($423 million).

Separately, Goldman, Sachs & Co. reinstated its “buy” rating on the stock with a price estimate of 2,938 pence in a note dated March 7.

“We favor tobacco as a sub-sector with consumer staples,” London-based Elise Badoy wrote in a note to clients today.

Intertek Group Plc (ITRK LN) climbed 55.5 pence, or 6.2 percent, to 951.5 after the world’s largest consumer-goods tester announced full-year profit that beat analysts’ estimates. Net income rose to 73.2 million pounds, more than the average analyst estimate of 71.8 million pounds.

Morgan Crucible Co. (MGCR LN) lost 8.25 pence, or 4 percent, to 201.25. The company whose ceramics and coatings are used by Ford Motor Co. was cut to “neutral” from “buy” at Merrill Lynch & Co. as the chance of a takeover offer for the company receded.

“Ongoing economic uncertainty make trade buyers less willing to leverage themselves,” London-based analysts including Asad Abedi wrote in a note today.

Oxford BioMedica Plc (OXB LN) dropped 1 pence, or 3.6 percent, to 27 after the biotechnology company spun off from Oxford University announced a loss of 15.3 million pounds.

Petrofac Ltd. (PFC LN) declined 24 pence, or 4.2 percent, to 542 after the U.K. oil-services company reported full-year net income of $188.7 million.

“Guidance has failed to impress as management guided towards flat margins,” Merrill Lynch analyst Alejandro Demichelis in London wrote in a note to clients today.

Irish Companies:

IAWS Group Plc (IAW ID) added 35 cents, or 2.6 percent, to 13.80 euros after the Irish maker of Delice de France croissants and Tim Hortons donuts said first-half profit rose 30 percent to 55.7 million euros on demand for its products in North America and Europe.