London close: Stocks rise despite heavy losses for gold miners; borrowing data in focus

(Sharecast News) - London stocks ended up on Tuesday despite heavy losses for gold miners, as the latest data from the Office for National Statistics showed that public sector borrowing in September hit its highest level for the month in five years.

The FTSE 100 closed 0.3% higher at 9,426.99, while the pound was down 0.1% against the dollar at 1.3387.

Borrowing came in at �20.2bn, up �1.6bn or 8.6% on the same month a year earlier and the highest for September since 2020.

Borrowing in the financial year to September was �99.8bn, up �11.5bn on the same period a year earlier and the second-highest April to September borrowing since monthly records began in 1993.

ONS chief economist Grant Fitzner said: "Last month saw the highest September borrowing for five years.

"Debt interest, the cost of providing public services and benefits all increased compared with last year, more than offsetting the rise in receipts from central government taxes and National Insurance contributions.

"Likewise, the first six months of the financial year saw the highest overall deficit since 2020."

Joshua Mahony at Scope Markets said: "The figures add pressure on Chancellor Rachel Reeves ahead of next month's autumn budget, where she is expected to announce tax hikes and spending cuts totalling at least �20-30bn."

In equity markets, Melrose Industries shot to the top of the FTSE 100 after GE Aerospace lifted its full-year profit outlook.

Metlen Energy & Metals was also a high riser as Citi renewed its rating on the stock after a period of 'rating suspended' with a 'buy' rating and �52 target price.

HSBC rose as it named a former NatWest executive as chief executive of its UK business, bringing a months-long search to a close. David Lindberg will take on the role from 8 December, having stepped down as head of retail banking at NatWest earlier this year.

Segro gained as it hailed a strong third quarter, with �22m of new rent signed.

On the downside, precious metals miner Fresnillo and gold miners Hochschild and Endeavour all lost their shine as gold and silver prices retreated from recent highs.

Chris Beauchamp, chief market analyst at IG, said: "At least a short-term top is now in place in gold and silver, perhaps offering the chance of a real 'buy the dip' moment in precious metals. Fans of the two had hoped that yesterday's recovery would lead to more gains but the mania appears to have popped for the time being.

"A temporary reckoning has arrived for Fresnillo too - having ridden the boom the shares are suffering one of the worst days in its history, on course for their biggest one-day fall in almost four years."

Coca-Cola HBC slumped as it said it was ramping up its presence in Africa after agreeing to acquire one of the brand's biggest bottling partners in a $2.6bn deal. The firm will buy a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6bn, valuing the Johannesburg-based business a value at $3.4bn.

The deal will create the second-largest Coca-Cola bottling partner by volume globally, with leading positions across Africa and Europe, CCH said.

Russ Mould, investment director at AJ Bell, said the reaction to the acquisition "betrays some nervousness on the part of the market".

"Coca-Cola HBC already has experience in Africa, having built a presence in Egypt and having enjoyed a longstanding footprint in Nigeria. However, there will still be risks involved in operating more widely across the continent and Coca-Cola HBC will hope these are justified by the growth opportunities on offer," said Mould.

"The decision to add a secondary stock market listing in Johannesburg reflects the significance of this deal but equally, there will be relief in the UK market that the primary stock listing will remain in London.

"Debt levels will bubble higher off the back of this transaction but Coca-Cola HBC expects to remain within its target range. A solid, if not spectacular, third-quarter update, unveiled alongside the acquisition, provides a measure of reassurance to investors."

Playtech was in freefall as Evolution said one of its subsidiaries had commissioned "controversial" investigation firm Black Cube to prepare a 2021 report that contained "highly inflammatory and knowingly false claims" about the Swedish maker of online casino games.

Evolution learned of Playtech's involvement in the report - which it said was intended to "substantially harm the company for anti-competitive reasons" - through legal proceedings, after the New Jersey Superior Court ordered Black Cube to reveal the identity of its client.

"It is deeply disturbing to learn that one of our competitors has gone to such extraordinary lengths to damage our business and reputation by hiring Black Cube and paying them over �1.8m to fabricate a report they knew would have extremely harmful repercussions," Evolution said.

Market Movers

FTSE 100 (UKX) 9,426.99 0.25%

FTSE 250 (MCX) 21,908.30 0.18%

techMARK (TASX) 5,530.09 0.30%

FTSE 100 - Risers

Melrose Industries (MRO) 634.00p 5.32%

Metlen Energy & Metals (MTLN) 42.85p 5.02%

JD Sports Fashion (JD.) 98.34p 3.00%

SEGRO (SGRO) 691.80p 2.85%

Whitbread (WTB) 3,046.00p 2.46%

Persimmon (PSN) 1,179.00p 2.34%

Pearson (PSON) 1,111.00p 2.07%

Smurfit Westrock (DI) (SWR) 3,183.00p 1.99%

Auto Trader Group (AUTO) 797.00p 1.92%

WPP (WPP) 354.20p 1.90%

FTSE 100 - Fallers

Fresnillo (FRES) 2,114.00p -12.21%

Entain (ENT) 786.20p -3.18%

Anglo American (AAL) 2,826.00p -2.38%

Antofagasta (ANTO) 2,636.00p -2.26%

British American Tobacco (BATS) 3,733.00p -1.76%

Glencore (GLEN) 344.40p -1.43%

Kingfisher (KGF) 298.80p -1.39%

easyJet (EZJ) 480.30p -1.17%

Airtel Africa (AAF) 227.40p -1.13%

Imperial Brands (IMB) 2,953.00p -1.07%

FTSE 250 - Risers

W.A.G Payment Solutions (EWG) 95.00p 5.09%

AO World (AO.) 100.40p 4.47%

Ibstock (IBST) 127.60p 3.24%

Big Yellow Group (BYG) 1,176.00p 3.16%

JTC (JTC) 1,338.00p 3.08%

Vistry Group (VTY) 649.00p 2.95%

TBC Bank Group (TBCG) 4,225.00p 2.80%

Carnival (CCL) 1,994.50p 2.76%

Clarkson (CKN) 3,520.00p 2.62%

Watches of Switzerland Group (WOSG) 380.60p 2.59%

FTSE 250 - Fallers

Playtech (PTEC) 266.50p -22.53%

Hochschild Mining (HOC) 363.20p -13.93%

Endeavour Mining (EDV) 3,068.00p -9.71%

Bluefield Solar Income Fund Limited (BSIF) 75.60p -9.24%

Raspberry PI Holdings (RPI) 370.40p -3.44%

FirstGroup (FGP) 201.20p -3.08%

Johnson Matthey (JMAT) 2,096.00p -2.87%

BlackRock World Mining Trust (BRWM) 657.00p -2.52%

Telecom Plus (TEP) 1,790.00p -2.29%

Foresight Solar Fund Limited (FSFL) 77.00p -2.28%