London midday: Stocks stay down as Autotrader, Convatec slump on results

(Sharecast News) - London stocks were still weaker by midday on Thursday as oil prices resumed their march higher, with Autotrader, Convatec and BT all proving to be a drag after disappointing results.

The FTSE 100 was down 0.4% at 10,391.66, while Brent crude was 2.2% higher at $107.28 a barrel, having tumbled on Wednesday after Donald Trump told reporters at the White House that the US was in the "final stages" of talks with Iran, while also threatening yet again to attack Tehran if a deal is not reached.

Susannah Streeter, chief investment strategist at Wealth Club, said: "Amid this uncertainty about where negotiations really do stand, oil prices have started to creep higher after their fall yesterday. Brent crude is back trading above $106 a barrel. There's a realisation that even if the Strait of Hormuz were to fully reopen next week, supply snarl-ups will continue for many months."

On home shores, a survey showed that business activity fell in May for the first time since April 2025 as political uncertainty at home added to the impact of the war in the Middle East.

The flash S&P Global composite output index fell to a 13-month low of 48.5 from 52.6 in April and versus expectations of 51.6. A reading above 50.0 indicates expansion, while a reading below signals contraction.

The flash services PMI business activity index declined to a 64-month low of 47.9 in May from 52.7 the month before, while the manufacturing output index printed at 52.4, up from 51.8 in April and hitting a three-month high.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "The UK economy is facing a perfect storm, as rising political uncertainty adds to the growing impact from the war in the Middle East. Businesses are reporting falling output, surging inflation, supply shortages and job cuts in May.

"The May PMI data indicate that the economy contracted at a 0.2% quarterly rate, representing a marked contrast to the robust growth seen earlier in the year. The blame lies first and foremost with the war in the Middle East, though companies are also noting that domestic politics are taking an increasing toll, driving uncertainty higher, in turn deterring spending, hiring and investment."

Meanwhile, the latest survey from the Confederation of British Industry showed that manufacturing orders shrank in May at the fastest rate since September 2020. The CBI's monthly balance of total new orders declined to -41 from -38 in April.

CBI senior economist Cameron Martin said manufacturers remain under significant pressure, with a growing share of firms expecting to raise prices over the summer, pointing to mounting cost pressures across the sector.

"Against an increasingly uncertain global backdrop, the conflict in the Middle East is feeding through to higher energy costs and renewed supply chain disruption, adding another layer of challenges for manufacturers, who are already grappling with weak demand," he said.

In equity markets, Autotrader slid after results. Derren Nathan, head of equity research at Hargeaves Lansdown, said: "Half year results were decent enough but news that revenue and car price growth had flattened in April, and full-year guidance below market forecasts sparked a sell-off."

Convatec tumbled despite saying it had enjoyed a good start to the year and that it was on track to deliver its guidance for 2026.

Telecoms giant BT Group was weaker as it reported flat full-year adjusted earnings as service revenue fell 1% on the back of lower business and consumer voice volumes.

Sage Group fell despite lifting its full-year outlook, while Mitchells & Butlers slumped as it reported a slowdown in second-quarter sales as consumers reined in spending.

EasyJet nudged lower as the budget airline posted a widening of its first-half losses, in line with the guidance given in April, as it said its performance so far in the second half has been hit by higher fuel costs due to the Middle East conflict, and lower forward visibility.

Whitbread and Imperial Brands were on the back foot as they traded without entitlement to the dividend.

On the upside, ICG rallied as it said full-year fee-earning assets under management rose 11% to $87bn, with fundraising exceeding its expectations at $17bn.

Utilities - which are defensive stocks - were on the rise, with Centrica, National Grid and United Utilities all up.

AJ Bell surged as the investment platform lifted its full-year outlook, hailing an "excellent" first-half performance with record customer growth.

Qinetiq also shot higher after it reported a record full-year order intake, hiked its dividend by 24% and announced a £200m share buyback extension.

Market Movers

FTSE 100 (UKX) 10,391.66 -0.39%

FTSE 250 (MCX) 22,898.51 0.26%

techMARK (TASX) 5,973.72 0.57%

FTSE 100 - Risers

ICG (ICG) 1,899.00p 3.60%

IG Group Holdings (IGG) 1,861.00p 3.16%

Babcock International Group (BAB) 1,065.50p 2.45%

3i Group (III) 2,229.00p 2.29%

SSE (SSE) 2,377.00p 1.71%

Centrica (CNA) 197.40p 1.36%

Scottish Mortgage Inv Trust (SMT) 1,489.00p 1.33%

National Grid (NG.) 1,271.00p 1.27%

SEGRO (SGRO) 709.20p 1.17%

United Utilities Group (UU.) 1,361.00p 1.04%

FTSE 100 - Fallers

Autotrader Group (AUTO) 458.30p -7.33%

Convatec Group (CTEC) 198.50p -6.82%

BT Group (BT.A) 224.10p -2.94%

The Sage Group (SGE) 872.20p -2.52%

Whitbread (WTB) 2,360.00p -2.18%

Imperial Brands (IMB) 2,818.00p -2.15%

Rightmove (RMV) 410.90p -1.88%

Fresnillo (FRES) 3,270.00p -1.56%

Burberry Group (BRBY) 1,111.50p -1.55%

Lloyds Banking Group (LLOY) 98.40p -1.52%

FTSE 250 - Risers

AJ Bell (AJB) 612.00p 14.23%

QinetiQ Group (QQ.) 476.80p 10.47%

Investec (INVP) 637.50p 4.33%

Ceres Power Holdings (CWR) 620.50p 4.20%

AEP Plantations (AEP) 1,828.00p 4.10%

IntegraFin Holding (IHP) 344.50p 3.30%

Chemring Group (CHG) 502.50p 3.23%

B&M European Value Retail (BME) 169.30p 2.92%

XP Power Ltd. (DI) (XPP) 1,810.00p 2.71%

Aston Martin Lagonda Global Holdings (AML) 46.12p 2.67%

FTSE 250 - Fallers

Mitchells & Butlers (MAB) 236.50p -6.34%

Playtech (PTEC) 347.40p -4.82%

Ithaca Energy (ITH) 263.00p -4.19%

RS Group (RS1) 665.00p -3.62%

Bytes Technology Group (BYIT) 347.60p -3.50%

Close Brothers Group (CBG) 444.80p -3.30%

Bluefield Solar Income Fund Limited (BSIF) 80.00p -2.79%

Pan African Resources (PAF) 135.90p -2.65%

Hochschild Mining (HOC) 577.00p -2.45%

TBC Bank Group (TBCG) 4,418.00p -2.44%