FTSE falls; Rentokil and banks weigh; Whitbread up

By Michael Taylor

LONDON, Feb 28 (Reuters) - The FTSE 100 .FTSE index of Britain's leading shares ended down almost 2 percent, near its session low, on Thursday as Rentokil dragged after a profit warning and banks headed lower, while Whitbread supported.

The blue-chip index slipped 110.8 points, or 1.8 percent to 5,965.7 as across the Atlantic, U.S. markets fell on recession fears.

Fears were heightened when U.S. data showed sluggish economic growth, while new jobless claims jumped sharply last week, reinforcing a fragile outlook that some fear spells recession. [ID:nN28549245]

The near 2 percent dip was the FTSE 100's biggest daily fall in three weeks.

Leading the downside, pest control to parcel delivery group Rentokil (RTO.L: Quote, Profile, Research) plunged more than 23 percent to 16-year lows after a second profit warning in as many months triggered calls for a sale or break-up.

Standard & Poor's Ratings Services said it had revised its outlook on Rentokil to negative from stable.

"Dragged down by disappointing corporate data," said Henk Potts, a strategist at Barclays Wealth of the UK market. "While the U.S. has been effected by disappointing economic data, the UK has been affected by some disappointing corporate stuff."

Among sectors, banking stocks weighed, accounting for around 25 negative index points as writedown fears resurfaced.