3rd Dec 2025 12:13
(Alliance News) - Stock prices in London were lower at midday on Wednesday, as the FTSE 100 failed to benefit from a rally among European peers.
The FTSE 100 index was down 13.62 points, 0.1%, at 9,688.18. The FTSE 250 was down 36.03 points, 0.2%, at 21,945.97, and the AIM All-Share was up 0.35 points at 748.67.
The Cboe UK 100 was down 0.1% at 971.09, the Cboe UK 250 was marginally lower at 19,042.24, and the Cboe Small Companies was up 0.1% at 17,618.08.
In European equities on Wednesday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was 0.2% higher.
"Miners did their best to prop up the FTSE 100, but opposing forces from the banking, pharma and utility sectors were too great to keep the index in positive territory," said AJ Bell analyst Dan Coatsworth.
Growth in the UK service sector slowed in November amid a renewed decline in new orders, purchasing managers' index survey results from S&P Global showed.
The services PMI business activity index fell to 51.3 points in November from 52.3 in October, but beat the flash reading of 50.5 released late last month.
The reading remained above the neutral 50-point mark separating growth from contraction but indicated only a marginal expansion in service sector output.
S&P Global said service providers responding to the survey commented on growth headwinds from subdued business and consumer confidence. A number said that uncertainty ahead of the UK government budget had led to cautious spending patterns and delayed investment decisions.
The UK composite PMI - a blend of the service and manufacturing sector readings - fell to 51.2 points in November from 52.2 in October. The index signalled a marginal rise in business activity and beat the flash reading of 50.5. The index has been above the neutral 50-point mark in each month since May.
On Monday, S&P Global said the PMI for manufacturing rose to a 14-month high of 50.2 points in November from 49.7 in October, climbing above the no-change threshold.
Sterling was at USD1.3287 at midday on Wednesday, up from USD1.3195 at the London equities close on Tuesday. The euro was higher at USD1.1662 from USD1.1607. Against the yen, the dollar was lower at JPY155.44 versus JPY155.76.
Stocks in New York were called higher. The Dow Jones Industrial Average and S&P 500 index were called up 0.2%, while the Nasdaq Composite was called 0.1% higher.
The yield on the 10-year US Treasury narrowed to 4.07% at midday on Wednesday from 4.10% at Tuesday's close. The yield on the 30-year was at 4.74% slightly slimmed from 4.75%.
In London, Antofagasta led the FTSE 100 index and climbed 5.4% amid gains in the price of copper and after JPMorgan raised its price target to 3,500 pence from 3,400p.
The bank maintained its 'overweight' rating on the Chile-focused miner.
Mining peer Fresnillo climbed 3.5% after JPMorgan placed it on 'positive catalyst watch'.
Glencore rose 4.3%. The miner is holding its capital markets day. The company decides to restart the Alumbrera copper and gold operation in Argentina, expected to occur in the fourth quarter of 2026, with first production in the first half of 2028.
Alumbrera is expected to produce around 75,000 tonnes of copper, 317,000 ounces of gold and about 1,000 tonnes of molybdenum during the four years of operations.
Chief Executive Officer Gary Nagle says: "Our coal and energy businesses continue to play a strategic role in supporting the energy and infrastructure needs of today and tomorrow, through our leading seaborne steelmaking and energy coal assets as well as our rapidly growing liquefied natural gas, power, gas and carbon marketing businesses."
J Sainsbury shares slumped 3.7% after Qatar Holding said it plans to sell around GBP272 million worth shares in the London-based grocer.
Qatar Holding, founded in 2006 by the Qatar Investment Authority, invests internationally and locally in strategic private and public equity as well as in other direct investments.
Qatar Holding is currently the largest shareholder in Sainsbury, according to the FTSE 100-listed company's website.
But the share sale will see it overtaken by Vesa Equity Investment Sarl, run by Czech billionaire Daniel Kretinsky. Vesa currently has a 10% stake in Sainsbury.
"QIA might take the view that now is a good time to cut its exposure as Sainsbury's regaining its mojo is one thing, taking it to another level is more challenging," noted AJ Bell analyst Dan Coatsworth.
On the FTSE 250 index, Zigup shares jumped 14% as it reported a "great start" to the financial year, including a "standout" performance from its Spanish rental business and good momentum in the UK & Ireland.
The Darlington, England-based vehicle rental and management firm said pretax profit rose 16% to GBP65.0 million in the half year ended October from GBP56.2 million the year prior, but declined 0.4% to GBP81.7 million from GBP82.0 million on an underlying basis.
Revenue rose 2.9% to GBP929.6 million from GBP903.6 million, or by 4.5% on an underlying basis to GBP809.9 million from GBP775.0 million.
"It has been a great start to the year for our rental businesses with Spain delivering a standout performance and UK&I Rental showing good momentum with recent fleet wins and expansion of our specialist fleet," said Chief Executive Martin Ward.
For the full-year, Zigup now expects full year underlying pretax profit to be "at least at the top" of the GBP150 million to GBP155 million range of analysts' expectations, compared to GBP166.9 million in the financial year to April 30.
"We see good opportunities" in financial 2026, Zigup said, with "robust demand for our mobility solutions across our markets."
Spire Healthcare shares slid 15% as it warned the recent slowdown in NHS commissioning activity would dent full-year profits.
Spire said trading has been "positive" since interim results in July, with revenue growth of 3.6% on-year in the four-months from July to October.
But while self-pay trends have continued to improve, this has not been sufficient to offset the recent slowdown in NHS commissioning activity, due to Integrated Care Board budgetary restrictions.
As a result, the firm expects full-year adjusted group earnings before interest, tax, depreciation and amortisation to be around the bottom end of the GBP270 million to GBP285 million guidance range.
For financial 2026, Spire expects adjusted Ebitda to be "broadly in line or slightly ahead of 2025."
In 2024, Spire reported adjusted Ebitda of GBP260 million, up 11% from GBP234.0 million in 2023.
"Looking further ahead, we would naturally expect this market environment to lead to further growth in private patient volumes and we remain confident in the medium-term outlook," the firm added.
Paragon Banking Group shares dropped 6.0% as it reported a just over 1% increase in profit, despite bigger rises in revenue and its loan book, after the bottom line was weakened by credit losses and a potential motor commission redress.
The Solihull, England-based bank said pretax profit rose 1.1% to GBP256.5 million for the year ended September 30 from GBP253.8 million the year before.
Net interest income rose 4.0% to GBP502.3 million from GBP483.2 million. The loan book grew 4.0% to GBP16.34 billion at year-end from GBP15.71 billion.
Offsetting this income growth and weakening the bottom line, provisions for credit losses increased 71% to GBP41.9 million from GBP24.5 million, and provisions for liabilities were GBP25.5 million, compared to zero the year before.
On the AIM market, GENinCode shares spiked 19%.
The genetic testing company said its Cardio inCode-Score Polygenic Risk Score for the prediction and prevention of coronary heart disease won approval from the New York State Department of Health.
The approval of the test by New York State allows full state coverage under US Centres for Medicare & Medicaid Services at an average reimbursement of USD500 per test, the firm said.
It continues to progress discussions with the US Food & Drug Administration and expects to submit additional data to complete its de novo assessment in the first quarter of 2026.
Among small caps, Ondo InsurTech shares dropped 19%.
The claim prevention technology company said its pretax loss widens to GBP3.9 million in the six months to the end of September from GBP2.4 million a year ago.
Revenue jumped 26% to GBP2.1 million from GBP1.7 million while administrative expenses climbed 28% to GBP3.2 million from GBP2.5 million.
Ondo ended the period with cash of GBP600,000. The firm said it intends to secure GBP2.2 million in a fundraise at 25p per share.
It said the net proceeds will be used to accelerate the firm's commercial progress in the US through the expansion of US plumber coverage and infrastructure.
Gold was up at USD4,204.10 an ounce at midday on Wednesday from USD4,174.00 late Tuesday. Silver rose to USD58.24 an ounce, touching a fresh high. Silver hit a new record of USD58.94 an ounce on Wednesday amid concerns over tight global supplies.
Brent oil was trading higher at USD63.13 a barrel from USD62.81.
Still to come on Wednesday's economic calendar are ISM services figures from the US along with payroll data from ADP.
By Michael Hennessey, Alliance News reporter
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