4th Dec 2025 12:23
(Alliance News) - Stock prices in London were higher at midday on Thursday, though data showed that in November UK construction activity fell at the fastest pace since the pandemic.
The FTSE 100 index was up 23.65 points, 0.2%, at 9,715.72. The FTSE 250 was up 41.34 points, 0.2%, at 22,042.79, and the AIM All-Share was up 0.23 points at 749.40.
The Cboe UK 100 was up 0.2% at 973.78, the Cboe UK 250 was up 0.3% at 19,148.21, and the Cboe Small Companies was marginally lower at 17,609.55.
In European equities on Thursday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was 0.7% higher.
"The FTSE 100 drifted in early trading on Thursday, dragged down by weakness in the mining and energy sectors," said AJ Bell analyst Russ Mould.
However, by midday, the FTSE 100 had climbed.
Mould added: "Weaker-than-expected US unemployment data may have further firmed up expectations of a rate cut when the Federal Reserve meets next week. However, this is not 'new news' for investors and the indifferent performance of stocks in the UK and Asia suggests its ability to sustain market momentum is ebbing away.
"This leaves the focus on extended valuations in the technology sector and sentiment seems to be more cautious for now."
In economic data, UK construction activity fell at the fastest pace in five and a half years in November, in the eleventh month of lower construction output.
The headline S&P Global UK construction purchasing managers' index fell to 39.4 points in November from 44.1 in October. The reading was below the neutral 50-point mark separating growth from contraction for the eleventh month in a row.
The rate of decline in total industry activity was the steepest recorded since May 2020.
Sub-sector data showed the housing activity, commercial construction and civil engineering all saw the fastest downturns in activity for five and a half years.
"November data revealed a sharp retrenchment across the UK construction sector as weak client confidence and a shortfall of new project starts again weighed on activity," said Tim Moore, economics director at S&P Global Market Intelligence.
"Total industry activity decreased to the greatest extent for five-and-a-half years, led by steep falls in infrastructure and residential building work. Commercial construction also faced severe headwinds during November as business uncertainty in the run up to the budget pushed clients to defer investment decisions."
Sterling was at USD1.3361 at midday on Thursday, up from USD1.3342 at the London equities close on Wednesday. The euro was higher at USD1.1680 from USD1.1664. Against the yen, the dollar was lower at JPY154.51 versus JPY155.02.
Stocks in New York were called mixed. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index slightly higher, and the Nasdaq Composite was called marginally lower.
The yield on the 10-year US Treasury was unchanged from Wednesday's close at 4.08% at midday on Thursday. The yield on the 30-year slimmed slightly to 4.74% from 4.75%.
In London, SSE and National Grid said they will review the full details of a GBP28 billion funding package announced by the UK energy watchdog, though the duo for now said they "welcome" the framework.
Ofgem announced a GBP28 billion investment which it said will go towards a "safe, secure and resilient energy grid".
"Energy network companies have been given the green light for multi-billion-pound funding to strengthen the stability security and resilience of our energy networks. This investment will upgrade power and gas grids, creating a future-ready system that better shields customers from volatile energy bills," Ofgem said.
SSE's SSEN Transmission arm said that based on an initial assessment, it welcomed "improvements to baseline total expenditure".
"However, a detailed assessment is required to determine the overall investability of the package," it added.
Shares in SSE were down 2.5%. SSE shares have gone ex-dividend on Thursday, meaning new buyers will not qualify for the most recent payout.
National Grid shares were 0.3% lower as it said it welcomed Ofgem recognising the need for "significant investment into the electricity transmission sector".
On the FTSE 250 index, shares in Future jumped 6.2% as it announced increased shareholder returns despite reporting lower full-year sales and profit amid challenging conditions.
Pretax profit fell 11% to GBP91.9 million in the financial year ending September from GBP103.2 million the year prior, with diluted earnings per share down 7.0% to 62.1 pence from 66.8p.
Revenue slipped 6.2% to GBP739.2 million from GBP788.2 million with a 3% organic decline combined with adverse foreign exchange and previously announced business closures.
Future announced a new GBP30 million share buyback and boosted the dividend five-fold to 17p per share from 3.4p.
Looking ahead, Future expects modest organic revenue growth in financial 2026, in line with current consensus, with performance second half weighted as strategic initiatives and operating model changes will deliver in the second half of the financial year.
Trustpilot shares sank 25% as Grizzly Research said it holds a short position and published a negative report on the firm.
Baltic Classifieds shares were down 17% as it warned lower revenue growth and continued investment will depress margins in the short-term after reporting mixed first half earnings.
Pretax profit rose 22% to EUR30.5 million in the six months to October 31 from EUR25.0 million the year prior, as revenue grew 7.2% to EUR44.8 million from EUR41.8 million.
Sales growth was held back by faster selling times and the corresponding downward pressure on advertising inventory, especially compared to the record levels achieved a year ago, the online classified ads portal provider in Lithuania, Estonia and Latvia said. In addition, Estonian auto transactions were down by half as a result of tax changes.
Despite record inventory comparables, and challenges in the Estonian auto market, the firm expects revenue growth for the second half of the financial year will be above that of the first half and will accelerate into double digits for financial 2027.
Real Estate and Auto are expected to lead this growth. Jobs & Services and Generalists are expected to grow at a more moderate pace.
Nonetheless, Baltic Classifieds said lower revenue growth and continued investment means some earnings before interest, tax, depreciation and amortisation margin compression is "inevitable", although it expects Ebitda margin to continue in the mid-seventies.
In the first half of the financial year, Baltic Classifieds reported an Ebitda margin of 78%, down from 79% a year ago.
On the AIM market, GENinCode shares surged 27%.
The genetic testing company said it is collaborating with Boston, Massachusetts-based life science technology firm Thermo Fisher Scientific to sell, distribute and manufacture the Cardo inCode-Score polygenic risk score for the prediction and prevention of coronary heart disease.
The collaboration includes sales and distribution across the US, Europe, Middle East and Africa regions.
"We are delighted to announce this milestone collaboration with Thermo Fisher Scientific to scale Cardio inCode-Score across the US and EMEA markets. The collaboration advances our commercial pathway and will accelerate the adoption of Cardio inCode-Score well beyond our current capabilities," said GENinCode Chief Executive Officer Matthew Walls.
Gold was down at USD4,197.50 an ounce at midday on Thursday from USD4,222.94 late Wednesday. Brent oil was trading lower at USD62.87 a barrel from USD63.04.
Still to come on Thursday's economic calendar is initial jobless claims data in the US.
By Michael Hennessey, Alliance News reporter
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