UK stocks maintained a steady position on Wednesday, building on a 0.9% gain achieved after the budget announcement. Commodity-related stocks exerted downward pressure on the index, while gains were seen in the beverage, food, and banking sectors. Gambling firms faced challenges due to increased betting duties, prompting adjustments in financial forecasts and cost-cutting measures from some companies.
- Rio Tinto and Anglo American declined by 1.3%.
- Fresnillo and Antofagasta decreased by approximately 0.8–0.9%.
- BP, Glencore, and Shell experienced slight declines.
- Diageo and Associated British Foods increased by around 1.3–1.5%.
- Barclays, Lloyds, and NatWest traded higher.
- Evoke anticipates an £80 million reduction in 2025 revenue and £130 million annually from 2027 due to tax increases, with plans to offset about half through cost cuts.
- Entain projects a £200 million impact and intends to mitigate roughly a quarter.
The mixed performance suggests a market grappling with sector-specific challenges and opportunities. Weakness in commodity shares contrasted with gains in other areas, indicating a potential shift in investor sentiment. The gambling sector faces considerable headwinds, necessitating strategic adjustments to navigate increased tax burdens. These factors combined contribute to an environment where selective stock picking and careful consideration of industry-specific factors are crucial for investors.