Stocks in London were mixed at midday on Tuesday, amid ‘strong dynamics behind UK property,’ while variety goods store chain B&M European Value Retail fell as trading deteriorated.
For September, the average price was £298,184, down 0.3% from August but up 1.3% from September 2024, Halifax reported. FXStreet-cited consensus, by contrast, had expected a 0.2% on-month increase and a 2.2% rise annually. Prices in August had risen 0.3% monthly and 2.2% annually.
‘The housing market seems to be stalling ahead of the upcoming Budget...An unexpected month-on-month fall and slower anticipated annual growth the weakest in nearly 18 months are signs it is becoming a buyer’s market as we wait to see what Chancellor Rachel Reeves has in store at the end of next month,’ AJ Bell’s Russ Mould commented. ‘This tallies with commentary from the housebuilding industry, suggesting the timing of Budget, so late in the year, is having a negative impact.’
He added: ‘The strong dynamics behind UK property, with limited supply and robust demand, mean prices are unlikely to go into freefall and today’s data is hardly disastrous. However, it is ultimately negative news for a sector which has been trying to rebuild from a difficult period coming out of the Covid pandemic.’
The FTSE 100 index was up 1.46 points at 9,480.60. The FTSE 250 was down 14.42 points, 0.1%, at 22,085.32, and the AIM All-Share was up 2.87 points, 0.4%, at 798.50.
The Cboe UK 100 was down 0.1% at 947.29, the Cboe UK 250 was down 0.1% at 19,310.16, and the Cboe Small Companies was down 0.1% at 18,003.11.
On the FTSE 250, B&M European Value Retail fell 5.7%.
In an unscheduled trading update, the Luxembourg-based variety goods store chain in UK and France said B&M UK like-for-like sales fell 1.1% on year in the second quarter that ended September 27, weaker than its expectations, and below Visible Alpha consensus, which forecast a decline of 0.4%.
For the 26 weeks to September 27, B&M UK LFL sales increased 0.1% on year, below VA consensus for 0.5% growth.
‘The new boss of B&M has unveiled measures to put the business back on top,’ said AJ Bell’s Dan Coatsworth. ‘Prices have been slashed on certain key products to make B&M more competitive. It says pricing adjustments have been made elsewhere to limit the impact on margins, implying that prices have gone up on certain goods.’
He continued: ‘It’s good to have a plan; unfortunately, the retailer still needs to contend with the present, and trading has got even worse. The pace of UK revenue growth has halved from the first to the second quarter. Heron Foods has gone into reverse, although B&M’s French arm is doing better. Layer on top cost pressures and it’s clear the company has a lot to do before it can reap any benefits of a turnaround strategy.
‘The market is royally disappointed, with the shares hitting a new all-time low on the update. The journey to recovery starts now and it could be a long one.’
CVS climbed 10%.
Pretax profit, from continuing operations, decreased 7.4% to £32.6 million in the financial year to June 30. However, statutory pretax profit ballooned to £53.0 million from £6.4 million last year, after recognising a gain of £33.5 million on disposal of the Crematoria operations.
Revenue rose 5.4% on-year to £673.2 million, and CVS said that while full-year revenue growth and like-for-like sales were impacted by softer market conditions in the UK, the group saw improved revenue and like-for-like growth in the final quarter, with good momentum through the end of the year.
In European equities on Tuesday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.2%.
The pound was quoted at $1.3441 at midday on Tuesday in London, down compared to $1.3471 at the equities close on Monday. The euro stood at $1.1675, down against $1.1706. Against the yen, the dollar was trading at JP¥150.73, up compared to JP¥150.07.
Stocks in New York were called mixed. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index down 0.25 points, and the Nasdaq Composite up 7.25 points.
The yield on the US 10-year Treasury was quoted at 4.17%, widening from 4.16%. The yield on the US 30-year Treasury was quoted unchanged at 4.76%.
Brent oil was quoted lower at $65.34 a barrel at midday in London on Tuesday from $65.43 late Monday.
Gold was quoted higher at $3,959.06 an ounce against $3,957.68.
Still to come on Tuesday’s economic calendar, the US has consumer credit data to be published by the Federal Reserve. Trade balance data will not be out due to the government shutdown.
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