London midday: FTSE extends gains as GSK, AstraZeneca rally
By Michele Maatouk
Date: Monday 29 Sep 2025
(Sharecast News) - London stocks had extended gains by midday on Monday, with GSK and AstraZeneca powering ahead as investors shifted their focus to the US - where a potential government shutdown looms - and to Friday's all-important non-farm payrolls report.
The FTSE 100 was 0.7% higher at 9,353.17.
Richard Hunter, head of markets at Interactive Investor, said: "The possibility of a government shutdown this week is a complication which investors could do without. Quite apart from any disruption, there could be an impact on jobs and in addition, such an outcome would delay Friday's release of the non-farm payrolls report, which to some extent would leave the Fed flying on one engine.
"Even so, the NFP report - should it happen - is expected to show that around 40,000 jobs were added in September, compared to 22,000 the previous month, with unemployment staying unchanged at 4.3%. Such a weak reading for the second consecutive month would be indicative of the Fed's current dilemma.
"On the one hand, the economy is still not in need of obvious support, as evidenced by last week's readings such as strong ongoing GDP growth. By the same token, a weakening labour market is offset by inflation levels which are still north of the Fed target."
Hunter said that in any event, the market is pricing in another cut in October and one more before the year is out. "By definition, this leaves any decision open to disappointment and with valuations at stretched levels, and with the third quarter reporting season imminent, markets could be vulnerable," he said.
Hunter said the UK also remains "economically prone" to disappointment this week, with the release of GDP numbers following comments expected later from the Chancellor at the Labour Party conference ahead of the November Budget.
"The speech is unlikely to give any specific clues as to how the government may attempt to balance its books, but the inevitability of further tax rises has weighed on recent sentiment, with any strength in sterling, for example, being the result of US dollar pressure rather than optimism on UK economic prospects," he said.
Investors were mulling the latest Bank of England money and credit report, which showed that mortgage approvals dipped in August despite the cost of borrowing coming down.
The latest survey from the Confederation of British Industry was also in focus, showing that business confidence remained low in September as companies forecast further falls in activity during the coming quarter.
In equity markets, GSK pushed higher as it announced that chief executive Emma Walmsley is to leave the company after nearly a decade in the role. She will be replaced by the biopharma's chief commercial officer Luke Miels.
Richard Hunter said the announcement removes "some recent management uncertainty surrounding the stock, leaving the shares 13% higher this year despite the overarching concerns around pricing in the pharma sector as a whole".
Berkeley Group advanced as the housebuilder announced the promotion of a divisional finance director to its chief financial officer position. Neil Eady, who has been with the company for 12 years and currently leads the finance function of Berkeley Capital, has been appointed to the board with immediate effect.
Insurer Admiral rallied after a double upgrade to 'buy' at Jefferies.
Precious metals miner Fresnillo and gold miner Hochschild Mining also gained as gold prices hit a new high.
AstraZeneca rose after saying it plans to list its shares directly on the New York Stock Exchange, rather than the current depository shares, and that it will remain listed and headquartered in London.
Pets at Home ticked up as it said chief financial officer Mike Iddon was retiring after nine years in the job and would be replaced by Sarah Pollard, who joins from consumer goods group PZ Cussons.
Genuit advanced after saying it has bought Davidson - a business which comprises leading brands in the plumbing and heating sectors including Salamander Pumps, Cistermiser, Talon and Keraflo - for £49m.
CMC Markets surged as it struck a key deal with Australia's Westpac Banking Corporation to provide Westpac Share Trading and St George Directshares - the bank's online share trading services - with branded web and mobile white label platforms.
On the downside, Rentokil fell as Berenberg started coverage of the stock at 'sell'. "We recognise the potential for market-level growth in the long term, but think it is too early for investors to count on an upswing, due to challenges relating to the integration of Terminix," it said.
Market Movers
FTSE 100 (UKX) 9,353.17 0.74%
FTSE 250 (MCX) 21,843.88 0.75%
techMARK (TASX) 5,449.85 1.21%
FTSE 100 - Risers
Antofagasta (ANTO) 2,786.00p 4.50%
JD Sports Fashion (JD.) 91.72p 3.06%
Metlen Energy & Metals (MTLN) 48.25p 2.88%
GSK (GSK) 1,528.50p 2.86%
Berkeley Group Holdings (The) (BKG) 3,786.00p 2.82%
Admiral Group (ADM) 3,284.00p 2.69%
Convatec Group (CTEC) 231.20p 2.66%
BAE Systems (BA.) 2,065.00p 2.63%
Halma (HLMA) 3,416.00p 1.91%
Babcock International Group (BAB) 1,297.00p 1.89%
FTSE 100 - Fallers
Coca-Cola HBC AG (CDI) (CCH) 3,500.00p -3.26%
Rentokil Initial (RTO) 366.70p -0.76%
Coca-Cola Europacific Partners (DI) (CCEP) 6,570.00p -0.76%
BP (BP.) 442.95p -0.57%
Unilever (ULVR) 4,390.00p -0.50%
Centrica (CNA) 166.40p -0.39%
National Grid (NG.) 1,052.00p -0.38%
Severn Trent (SVT) 2,531.00p -0.20%
United Utilities Group (UU.) 1,122.50p -0.13%
Sainsbury (J) (SBRY) 330.00p -0.12%
FTSE 250 - Risers
CMC Markets (CMCX) 238.50p 6.71%
Oxford Biomedica (OXB) 570.00p 4.20%
Avon Technologies (AVON) 2,120.00p 4.18%
Aston Martin Lagonda Global Holdings (AML) 84.30p 4.14%
Keller Group (KLR) 1,466.00p 3.97%
Genuit Group (GEN) 351.50p 3.08%
BlackRock World Mining Trust (BRWM) 673.00p 3.06%
AO World (AO.) 102.60p 2.81%
Hochschild Mining (HOC) 361.40p 2.73%
IP Group (IPO) 53.70p 2.68%
FTSE 250 - Fallers
Pinewood Technologies Group (PINE) 410.50p -2.38%
Ithaca Energy (ITH) 196.60p -1.70%
B&M European Value Retail S.A. (DI) (BME) 259.40p -1.48%
Trainline (TRN) 277.60p -1.28%
Harbour Energy (HBR) 212.80p -0.93%
Close Brothers Group (CBG) 502.50p -0.89%
Pollen Street Group Limited (POLN) 922.00p -0.86%
Dr. Martens (DOCS) 93.80p -0.85%
Baltic Classifieds Group (BCG) 297.00p -0.83%
Pantheon International (PIN) 345.50p -0.72%
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