The FTSE 100 fell on Thursday amid a Europe-wide equity retreat, and London’s leading index factored in a raft of stocks trading ex-dividend.

“There was a sea of red across European markets as healthcare, real estate, financials and industrial stocks were out of fashion,” said Russ Mould, investment director at AJ Bell. 

“Weakness in names such as HSBC and AstraZeneca would suggest a more cautious tone among investors, but not a complete shift in sentiment.”

London’s leading index was down 0.4% at the time of writing.

There were more severe declines in Europe, as German consumer data continued to show negativity that pointed to a possible slowdown.

“The biggest downside moves were seen in the German DAX and French CAC which were down 0.7% and 0.6% respectively as lunchtime approached. The Swiss National Bank left its key interest rate unchanged at zero, as expected,” explained David Morrison, Senior Market Analyst at Trade Nation.

“The German GfK Consumer Climate survey was also broadly in line with forecasts. It continues to indicate a fair amount of pessimism amongst those surveyed. The index has been stuck deep in negative territory for the last four years.”

The rip-roaring rally in US stocks shows further signs of a pause, and the S&P 500 was heading for a weaker open, albeit a minor one compared to recent gains.

Stocks trading ex-dividend were among the top FTSE 100 fallers on Thursday, with Phoenix Group losing 5%.

There were also more declines for Ashtead and ConvaTec as the pair posted a second session of notable losses.

JD Sports recovered some of yesterday’s losses caused by their interim results as the group began a £100m share buyback programme.

Rio Tinto was the FTSE 100’s top riser with gains of 2%.

Mitchell’s & Butlers shares sank on the warning of cost inflation on Thursday despite the pub group posting fairly decent sales growth.

The group has produced reasonable sales growth throughout the 51-week period ending September 20, 2025, achieving 4.2% like-for-like sales growth year-to-date and 3.9% total sales growth.

Food sales grew 4.1% and drink sales rose 4.0% for the period.

However, the warning that costs would rise at 6%, outstripping recent sales growth, put the firm on course for margin compression. Investors baulked, and shares were 7% on Thursday.

“Harvester and All Bar One proprietor, Mitchell’s & Butlers has served up a reassuring full-year trading update. Fourth quarter sales growth has slowed, reflecting some hesitation among pub and restaurant goers in the broader market, but the group has extended its track record of outperforming the competition,” explained Derren Nathan, head of equity research, Hargreaves Lansdown.

“It’s set to deliver operating profit growth of around 5% to £328 million, an outcome worth raising a glass to, given the additional cost burden brought about by higher National Insurance contributions and the increase in the National Living Wage. There’s around another £130 million of cost inflation expected next year, which could dampen spirits.”

Nathan continued to explain that while there were some positives for Mitchell’s & Butlers, the challenges related to the UK consumer and the current valuation of the stock made the company an unattractive proposition.

“The group’s diverse brand portfolio, well-invested estate, and focus on efficiency, leaves it well placed to mitigate this pressure, while outgrowing the market. But the shares have more than doubled over the last three years and the valuation broadly reflects recent operational improvements. With consumer sentiment fragile, and the potential for a further tax grab in the November budget, there’s no obvious catalyst for near-term appreciation.”

Halma shares rose on Thursday after the group upgraded its revenue growth guidance after stronger-than-expected performance in the first half of its financial year.

The company now expects low double-digit organic growth for the full year, up from previous guidance of upper single digits. A driving force behind the upgrade was the strength in its photonics business within the Environmental & Analysis division.

Halma shares were up over 1% at the time of writing.

Order intake has outpaced both current revenue and last year’s comparable period, providing momentum for continued expansion. The group maintains its profit margin guidance of modestly above the midpoint of its 19-23% target range.

Investors should be pleased with the update, and the gains for shares would likley be stronger if Halma shares were not already up 25% year to date.

Acquisition Activity Continues

Halma has grown through acquisitions over the years and completed two acquisitions during the period. The larger deal saw it purchase Brownline, a specialist in gyroscopic locating systems for underground drilling, for €150m in August. It also acquired cryogenic therapy company Nu Perspectives for £1.5m as an add-on to its healthcare business.

The group disposed of AAI for approximately £10m whilst maintaining what it describes as a “healthy acquisition pipeline” for future deals.

Currency headwinds from sterling’s strength are expected to continue impacting results through the second half. Despite this, the company’s cash generation remains robust, supporting both organic investment and acquisitions.

The FTSE 100 was lower on Wednesday as UK stocks tracked US markets lower, with major indices taking a break from a rip-roaring rally.

London’s leading index was down 0.2% at the time of writing.

“Wall Street hit pause on its rally yesterday, with the S&P 500 slipping 0.6% and the Nasdaq down 0.9%. The pullback came after three straight record closes, as Fed Chair Powell flagged ‘fairly highly valued’ equity prices and investors reassessed the sustainability of recent AI-fuelled gains,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Micron bucked the trend with strong earnings and a bullish AI outlook, while Lithium Americas shares soared on news that it may be the US government’s next target for an equity stake.”

Defence names were the best performers in London on Wednesday after Donald Trump said European countries should shoot down Russian jets that violate their airspace. The US president also changed his tone on Ukraine, suggesting that Ukraine should retake land currently occupied by Russia.

This all hints at escalation or a prolonged conflict that will require higher defence spending. Babcock and BAE Systems were both higher by more than 1%.

JD Sports was also among the gainers as the firm announced a fresh £100m share buyback despite like-for-like growth remaining in retreat in all geographies in which the sports retailer operates.

“JD Sports delivered robust headline sales growth of 20% in the first half, supported by the major acquisitions of Hibbett and Courir, which expanded its reach in North America and Europe and drove further market share gains,” said Adam Vettese, market analyst for eToro.

“However, overall profit before tax fell by 13.5%, reflecting margin pressure, increased promotional activity, and softer trading in key regions, particularly the US and UK. Operating profit and adjusted earnings also declined as the group navigated a highly competitive retail environment and heightened cost inflation. 

“Despite these challenges, JD’s disciplined execution and strong cash generation enabled a new £100 million share buyback, showcasing confidence in its long-term prospects. Continued investment in omnichannel infrastructure and brand partnerships lays the groundwork for future growth, but the near-term outlook remains cautious given macro uncertainties and ongoing margin risks.”

Burberry was the FTSE 100’s top faller with a 2.3% decline.

Tekcapital has reported another period of record net assets as its portfolio company readies for a NASDAQ IPO that has the potential to create further value for shareholders.

The company achieved record net assets of US$77.4 million as of June 30, 2024, compared to US$70.1 million as of December 2024. This represents approximately 10% growth, which was driven by portfolio appreciation.

The net asset value per share remained stable at US$0.33, unchanged from 31 December 2024.

The portfolio valuation increased to US$68.8 million from US$61.5 million as of December 31, 2024. Meanwhile, revenue totalled US$6.1 million, generated from services and portfolio returns, compared to US$21.1 million recorded in the first half of 2024.

These were solid results from Tekcapital. However, investors will be more interested in the upcoming Guident IPO and just how much its valuation on flotation will add to the Tekcapital portfolio.

Looking ahead, the company is now operating at a significantly lower cost base and will soon no longer be required to fund the growth of its portfolio companies, with all five of its companies publicly traded.

“The reduction in operating expenses by 50% underscores our commitment to operating efficiency and ensures that a greater proportion of returns accrue to shareholders in the future. Our strategy continues to validate itself: commercialising GenAI-centric technologies to enhance business efficiency and improve quality of life,” said Dr. Clifford M. Gross, Chairman of Tekcapital.

“This approach has not only delivered profitable growth for Tekcapital but has also positioned most of our portfolio companies to create lasting societal impact, from reducing sodium intake in more than 470 million servings with Microsalt®, accelerating the commercialisation of hundreds of new university discoveries with GenIP, enhancing pedestrian and workplace safety for thousands of individuals with Lucyd smart eyewear, and improving autonomous vehicle safety with Guident.”

Gross continued to explain that Guident’s upcoming proposed NASDAQ IPO will play a major part in the firm’s future ability to return cash to shareholders in the form of special dividends.

“Guident has made notable commercial strides, from advancing its remote monitoring platform for autonomous vehicles to securing strategic contracts and expanding its leadership team,” Gross said.

“With its S-1 now publicly filed, Guident is well on its way to a potential NASDAQ listing. We believe this IPO has the potential to crystallise significant balance sheet value and facilitate future issuances of special dividends, whilst opening the door for a broader investor base to participate in its scale-up journey.”