London midday: FTSE stays up as investors mull borrowing figures
By Michele Maatouk
Date: Tuesday 21 Oct 2025
(Sharecast News) - London stocks were still firmer by midday on Tuesday, while sterling dipped after the latest UK borrowing figures.
The FTSE 100 was up 0.2% at 9,421.97, while the pound was down 0.2% against the dollar at 1.3373 after data from the Office for National Statistics showed that public sector borrowing in September hit its highest level for the month in five years.
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."
Russ Mould, investment director at AJ Bell, said: "It's hard to imagine that markets were in panic mode only four days ago. It's like all the troubles faded away over the weekend, and investors are back in risk-on mode.
"Wall Street enjoyed a particularly strong session on Monday, and that optimism has extended to Asia and Europe on Tuesday. The focus is now on US interest rate cuts, the new corporate reporting season, and US/China trade talks.
"There was only a mild reaction to the latest public sector finance figures on the bond market. 10-year gilts hovered around the 4.5% level despite UK government borrowing in September hitting the highest level for the month in five years. Markets already know that Rachel Reeves must act fast to get public finances in a better shape, and a lot is riding on next month's Budget for solutions."
In equity markets, Segro shot to the top of the FTSE 100 as it hailed a strong third quarter, with £22m of new rent signed.
On the downside, 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.
AJ Bell's Mould said the reaction to the acquisition "betrays some nervousness on the part of the market".
"This is a significant deal for the company in monetary terms and represents a slight departure from its previous focus, which has largely been on European markets," he said. "It is buying the majority holding in Coca-Cola Beverages Africa from a private equity firm and the eponymous soft drinks giant itself.
"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.
"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."
Consumer goods giant Unilever fell after saying it had been forced to revise the timetable for its planned ice-cream unit demerger due to the ongoing US federal government shutdown which is stalling a legal registration needed to list its shares in New York.
Playtech was the biggest loser on the FTSE 250, down a whopping 33% as Evolution said one of its subsidiaries was responsible for commissioning "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.
"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) 9,421.97 0.20%
FTSE 250 (MCX) 21,854.47 -0.06%
techMARK (TASX) 5,516.72 0.06%
FTSE 100 - Risers
SEGRO (SGRO) 693.20p 3.06%
Metlen Energy & Metals (MTLN) 41.90p 2.70%
HSBC Holdings (HSBA) 989.20p 2.00%
Relx plc (REL) 3,467.00p 1.82%
Auto Trader Group (AUTO) 794.80p 1.64%
Barclays (BARC) 367.20p 1.49%
Pearson (PSON) 1,104.50p 1.47%
Melrose Industries (MRO) 609.80p 1.30%
Spirax Group (SPX) 6,915.00p 1.17%
Experian (EXPN) 3,551.00p 0.91%
FTSE 100 - Fallers
Fresnillo (FRES) 2,302.00p -4.40%
Bunzl (BNZL) 2,396.00p -2.20%
Entain (ENT) 795.60p -2.02%
Antofagasta (ANTO) 2,654.00p -1.59%
Coca-Cola HBC AG (CDI) (CCH) 3,490.00p -1.36%
Anglo American (AAL) 2,860.00p -1.21%
easyJet (EZJ) 480.30p -1.17%
Kingfisher (KGF) 299.50p -1.16%
Unilever (ULVR) 4,614.00p -0.97%
ICG (ICG) 1,920.00p -0.93%
FTSE 250 - Risers
W.A.G Payment Solutions (EWG) 93.40p 3.32%
B&M European Value Retail S.A. (DI) (BME) 172.95p 3.13%
AO World (AO.) 98.90p 2.91%
Watches of Switzerland Group (WOSG) 380.40p 2.53%
NCC Group (NCC) 147.40p 2.22%
Ithaca Energy (ITH) 185.90p 2.03%
Sirius Real Estate Ltd. (SRE) 100.80p 1.82%
TBC Bank Group (TBCG) 4,180.00p 1.70%
AJ Bell (AJB) 540.00p 1.69%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 460.00p 1.66%
FTSE 250 - Fallers
Playtech (PTEC) 230.00p -33.14%
Hochschild Mining (HOC) 384.60p -8.86%
Bluefield Solar Income Fund Limited (BSIF) 78.50p -5.76%
Endeavour Mining (EDV) 3,260.00p -4.06%
FirstGroup (FGP) 201.20p -3.08%
Jupiter Fund Management (JUP) 143.00p -2.32%
Johnson Matthey (JMAT) 2,110.00p -2.22%
Aston Martin Lagonda Global Holdings (AML) 62.55p -1.96%
RHI Magnesita N.V. (DI) (RHIM) 1,980.00p -1.74%
THG (THG) 44.22p -1.73%
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