London close: Stocks flat but Kingfisher surges after guidance upgrade
By Michele Maatouk
Date: Tuesday 23 Sep 2025
(Sharecast News) - London stocks ended flat on Tuesday as investors mulled the latest PMI reading, but Kingfisher surged on upgraded guidance.
The FTSE 100 closed virtually unchanged at 9,223.32.
A survey out earlier showed that private sector output in the UK expanded at the slowest pace since May in September.
The S&P Global flash composite output index - which measures activity in the services and manufacturing sectors - eased to 51.0 in September from a 12-month high of 53.5 in August.
The flash services PMI business activity index fell to a two-month low of 51.9 in September from 54.2 the month before, while the manufacturing PMI printed at 46.2, down from 47.0 and a five-month low.
Chris Williamson, chief business economist at S&P Global Market Intelligence: "September's flash UK PMI survey brought a litany of worrying news including weakening growth, slumping overseas trade, worsening business confidence and further steep job losses.
"The only good news is perhaps that, just as the Bank of England grows increasingly worried about persistently elevated inflation, the PMI indicated that price pressures have moderated in September. Companies reported one of the smallest increases in prices charged for goods and services seen since the pandemic.
"With the weakening of business activity growth to a rate consistent with the economy almost stalling, and around 50,000 job losses being signalled by the PMI again in the three months to September, alarm bells should be ringing that the economy is faltering, which could help shift the policy debate at the Bank of England back towards a more dovish stance.
"However, amid talk of further tax rises being needed in the Budget later this year, it's not surprising to see that business expectations have worsened again in September, and in the absence of an improvement in confidence, it's unlikely that the economy will make any strong gains in the months ahead irrespective of the outlook for interest rates."
Meanwhile, the latest industrial trends survey from the Confederation of British survey showed the decline in manufacturing output eased in the three months to September.
The CBI's balance for manufacturing orders was -27%, up from -33 in August.
The gauge for the volume of output expected in the next three months declined to -14 in September from -13 the month before.
Ben Jones, lead economist at the CBI, said: "Manufacturers report a mix of pressures weighing on the sector: high energy costs, uncertainty over taxation and economic policy, and ongoing difficulties in accessing skilled labour. In this environment, planning for growth is extremely challenging, and this is feeding through to weaker orders, output and investment. While the pace of decline has eased, conditions look set to remain tough through to the end of the year.
"Businesses across the board are looking ahead to the November Budget with hope that it delivers meaningful action to ease cost and regulatory pressures. Without that clear policy direction, confidence will continue to ebb and firms will find it increasingly difficult to invest, hire and grow. They also hope to see the government use the coming weeks as an opportunity to refine the Employment Rights Bill so that a pragmatic and workable landing zone that avoids unintended consequences for growth can be found."
In equity markets, Kingfisher surged to the top of the FTSE 100 as the DIY retailer lifted its full-year profit guidance despite weaker consumer sentiment, following strong interim trading.
Sales at the owner of B&Q and Screwfix rose by 0.8%, or by 1.9% on a like-for-like basis, to £6.8bn in the six months to 31 July, driven by both increased volumes and transactions.
Operating profits rose by 2.1% to £383m, while pre-tax profits were 4.1% higher at £338m.
The blue chip flagged a "strong" performance in the UK, with like-for-like sales up 4.4% and 3% at B&Q and Screwfix respectively.
Travis Perkins and Wickes also advanced.
Land Securities gained as it hosted a capital markets event in Liverpool, saying that since its results in May, it has seen "good momentum" on its primary financial objective of delivering sustainable income and earnings per share growth. It highlighted ongoing strength in occupational demand across its central London and major retail portfolios.
Government contractor Serco rose after saying it had appointed Michael LaRouche as chief executive of its North American division and announcing that MT&S has been selected as sole provider for training and simulator services to the US Air Force.
On the downside, engineering business Smiths Group fell even as it delivered strong annual results, with organic growth coming in ahead of twice-raised guidance and profits up by double digits.
Oxford Biomedica slid despite reiterating full-year guidance and saying it had trimmed losses after seeing strong demand throughout the first half.
Market Movers
FTSE 100 (UKX) 9,223.32 -0.04%
FTSE 250 (MCX) 21,695.35 0.46%
techMARK (TASX) 5,432.31 -0.51%
FTSE 100 - Risers
Kingfisher (KGF) 289.10p 14.63%
Convatec Group (CTEC) 238.80p 2.93%
Antofagasta (ANTO) 2,418.00p 2.46%
CRH (CDI) (CRH) 8,590.00p 2.33%
Marks & Spencer Group (MKS) 360.30p 2.27%
Land Securities Group (LAND) 575.50p 2.22%
easyJet (EZJ) 457.20p 2.21%
Burberry Group (BRBY) 1,143.00p 1.92%
BP (BP.) 431.80p 1.72%
Barratt Redrow (BTRW) 376.90p 1.70%
FTSE 100 - Fallers
Metlen Energy & Metals (MTLN) 48.90p -4.12%
Smiths Group (SMIN) 2,298.00p -3.36%
St James's Place (STJ) 1,261.50p -2.53%
AstraZeneca (AZN) 11,258.00p -2.10%
Babcock International Group (BAB) 1,179.00p -1.91%
British American Tobacco (BATS) 3,897.00p -1.86%
Admiral Group (ADM) 3,230.00p -1.82%
Aviva (AV.) 666.80p -1.74%
Compass Group (CPG) 2,449.00p -1.61%
Fresnillo (FRES) 2,344.00p -1.51%
FTSE 250 - Risers
B&M European Value Retail S.A. (DI) (BME) 258.10p 4.75%
Serco Group (SRP) 233.60p 4.66%
Victrex plc (VCT) 729.00p 3.99%
Raspberry PI Holdings (RPI) 416.60p 3.68%
Spire Healthcare Group (SPI) 244.00p 3.61%
RHI Magnesita N.V. (DI) (RHIM) 2,100.00p 3.45%
BlackRock World Mining Trust (BRWM) 652.00p 3.33%
Travis Perkins (TPK) 581.50p 3.29%
Ibstock (IBST) 139.20p 3.26%
Frasers Group (FRAS) 728.00p 3.04%
FTSE 250 - Fallers
Oxford Biomedica (OXB) 589.00p -6.51%
Ocean Wilsons Holdings Ltd. (OCN) 1,145.00p -2.97%
Genus (GNS) 2,370.00p -2.87%
Chemring Group (CHG) 551.00p -2.82%
Oxford Nanopore Technologies (ONT) 156.80p -2.79%
Trustpilot Group (TRST) 225.00p -2.17%
Bakkavor Group (BAKK) 212.50p -2.07%
Assura (AGR) 46.04p -2.04%
JTC (JTC) 1,280.00p -1.69%
QinetiQ Group (QQ.) 516.50p -1.62%
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