London midday: FTSE stays down as gambling stocks tumble

London stocks were still a touch weaker by midday on Monday as China’s stimulus update over the weekend left investors feeling disappointed, and with gambling shares under the cosh amid reports of a potential £3bn tax raid on the sector.

The FTSE 100 was down 0.1% at 8,245.66.

Russ Mould, investment director at AJ Bell, said: “The devil is always in the detail and once again China has glossed over how it intends to accelerate economic growth.

“Investors were hoping Saturday’s event with China’s finance ministry would hold all the answers; instead, it was too top level to sustain the market’s optimism. While Chinese shares continued their ascent on Monday, the pace has slowed and some investors might now be wondering if we’ve seen the best of the rally.”

Looking ahead to the rest of the week, attention will turn to UK jobs data on Tuesday and inflation readings on Wednesday.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Investors will be keeping a close eye on UK labour market data out tomorrow and the latest CPI inflation snapshot due on Wednesday for clues about how determined policymakers may be to cut interest rates next month. With inflation staying steady in August there are hopes that prices will have remained calm in September.”

In equity markets, Ladbrokes owner Entain, Flutter Entertainment, Evoke and Rank Group all tanked following a report the government is planning a tax raid of up to £3bn on the gambling sector in this month’s Budget.

Recruiter PageGroup fell as it reported a 13.5% drop in third-quarter gross profit to £201.4m, with challenging market conditions and declining confidence affecting client and candidate decision-making across all regions.

On the upside, Severn Trent, United Utilities and SSE were among the top gainers on the FTSE 100.

Russ Mould said: “Defensive stocks were in vogue on the UK stock market, implying that investors are slightly troubled about what might be coming down the line. Utilities, supermarkets and defence groups led the way, a trio one normally associates with investor nervousness as they turn to companies that should grow in both good and bad economic conditions.”

TI Fluid Systems surged as it said it would be minded to recommend an improved takeover proposal from ABC Technologies at 200p a share, should a firm offer be made. TI Fluid has already rejected offers of 165p a share, 188p a share and 195p a share.

The latest proposal, made on 10 October, represents a premium of about 53.4% to the closing share price on 21 August, which was the last business day prior to ABC Technologies submitting its first proposal to the group.

Ashmore was also a solid performer as it said assets under management rose by $2.5bn in the first quarter, with emerging markets delivering strong returns.

Luxury handbag maker Mulberry shot higher as it said it was considering its position after major shareholder Challice said it had no intention of selling its 56% stake to Mike Ashley’s Frasers Group despite an increased bid for the company.

The statement came after Frasers, which already holds 37% of Mulberry, upped its offer for the rest of the firm to 150p a share from 130p late on Friday.

Market Movers

FTSE 100 (UKX) 8,245.66 -0.10%
FTSE 250 (MCX) 20,715.47 -0.24%
techMARK (TASX) 4,753.79 -0.37%

FTSE 100 – Risers

Vistry Group (VTY) 940.50p 1.90%
Severn Trent (SVT) 2,579.00p 1.70%
Bunzl (BNZL) 3,522.00p 1.62%
easyJet (EZJ) 503.60p 1.61%
United Utilities Group (UU.) 1,045.50p 1.46%
SSE (SSE) 1,853.50p 1.28%
GSK (GSK) 1,497.00p 1.15%
Sainsbury (J) (SBRY) 273.40p 0.89%
AstraZeneca (AZN) 11,856.00p 0.78%
BAE Systems (BA.) 1,279.00p 0.71%

FTSE 100 – Fallers

Entain (ENT) 704.60p -8.14%
Flutter Entertainment (DI) (FLTR) 17,490.00p -5.66%
Croda International (CRDA) 3,945.00p -2.52%
JD Sports Fashion (JD.) 128.00p -2.36%
Fresnillo (FRES) 650.50p -1.96%
Antofagasta (ANTO) 1,885.00p -1.69%
Land Securities Group (LAND) 630.50p -1.48%
Barratt Redrow (BTRW) 455.10p -1.37%
Kingfisher (KGF) 308.00p -1.35%
Prudential (PRU) 667.60p -1.30%

FTSE 250 – Risers

TI Fluid Systems (TIFS) 182.00p 19.58%
Ashmore Group (ASHM) 208.00p 6.89%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 702.00p 1.96%
Pennon Group (PNN) 558.00p 1.92%
Wizz Air Holdings (WIZZ) 1,239.00p 1.81%
TBC Bank Group (TBCG) 2,680.00p 1.71%
North Atlantic Smaller Companies Inv Trust (NAS) 3,940.00p 1.55%
Essentra (ESNT) 152.80p 1.46%
Quilter (QLT) 138.90p 1.39%
Discoverie Group (DSCV) 601.00p 1.18%

FTSE 250 – Fallers

Raspberry PI Holdings (RPI) 367.90p -4.84%
Close Brothers Group (CBG) 360.20p -3.59%
Indivior (INDV) 560.50p -2.78%
Burberry Group (BRBY) 645.20p -2.68%
Ocado Group (OCDO) 384.60p -2.41%
Carnival (CCL) 1,413.50p -2.25%
Auction Technology Group (ATG) 441.50p -2.21%
Wood Group (John) (WG.) 125.60p -1.95%
Genus (GNS) 2,010.00p -1.95%
Jupiter Fund Management (JUP) 84.50p -1.74%