UK – September Market Update

Market News |

In the UK, economic challenges persist as the country grapples with slower-than-expected growth and labor market issues. As the government shifts focus toward long-term stability amidst looming labor shortages and political policy debates, September offers valuable insights into how these factors may affect the nation’s recovery. Below are the key highlights and market trends.

Economic Updates

  • The UK’s economic output grew by 0.5% in the April-to-June period, slightly below the earlier estimate of 0.6%, while the household saving ratio rose to 10% in Q2. Despite these signs of strength, the economy is facing the second-weakest recovery in the G7 after the pandemic, and the national accounts deficit has widened.
  • In a significant shift, the Chancellor’s speech at the Labour Party conference moved from warnings of a “painful Budget” to emphasizing a “long-term prize” for restoring stability. She assured delegates that future tax rises would not primarily affect struggling working families and affirmed there would be “no return to austerity,” with real growth in public spending.
  • The Treasury is reevaluating Labour’s plan to change non-domicile tax status, fearing it may generate less revenue and prompt wealthy foreigners to leave the UK. A spokesperson noted that reports are speculative and not indicative of government policy.
  • New UK limits on international students and overseas workers may cost businesses over £40 billion, according to estimates. These changes are part of Prime Minister Sir Keir Starmer’s immigration policy, following similar moves by the previous Conservative government.
  • European diplomats are urging the UK government to reconsider implementing VAT on private education, which could raise school fees by 20% and impact international students and diplomatic families. Set for January 2025, the policy may reduce the UK’s appeal for education and disrupt children’s schooling.
  • Labor shortages are hitting UK farmers hard, with over half of Arla Foods UK’s dairy suppliers struggling to recruit. As a result, 1 in 12 farmers are cutting production, and 1 in 10 are reducing herd sizes due to a lack of qualified applicants.

UK stock updates

September was a challenging month for the UK markets! The FTSE 100 index dipped 1.52% to £8,236.95, while the FTSE All-Share Index followed suit, decreasing 1.24% to £4,511. A tough month for investors!

  • Luceco PLC has acquired CMD Ltd, a workplace wiring accessories manufacturer, for £30 million in cash. The acquisition, which boosted Luceco’s shares by 4.5% to 157.40 pence, was made through CMD’s parent company, Baltic Topco Ltd.
  • Anpario Inc., a subsidiary of Anpario PLC, has completed the acquisition of Bio-Vet Inc., a Wisconsin-based producer of animal health and nutrition products. Founded in 1996, Bio-Vet focuses on delivering innovative solutions for farmers through research and practical experience.
  • Haleon will increase its stake in its Chinese joint venture from 55% to 88% by paying 4.47 billion yuan ($637 million) to Tianjin Pharmaceutical Group and Tianjin Pharmaceutical Da Ren Tang Group.
  • Vistry Group PLC has launched a £130 million share buyback program, consisting of a £55 million ordinary buyback and a £75 million special buyback, as announced on September 5, 2024.
  • A house builder has partnered with Octopus Energy to deliver ‘zero bills’ on new developments, aiming for 100,000 zero-bill homes by 2030 and reducing the UK’s carbon footprint.

Top gainer and top loser Halal stocks in the UK for September

Summary

The UK faces multiple headwinds as economic growth remains subdued and labor shortages weigh on critical sectors. Nevertheless, political decisions and corporate movements will be key in shaping future market performance. The coming months may bring both opportunities and further challenges.

Disclaimer: The content is for informational purposes only and does not constitute financial advice.  It is important to conduct your own research or consult with a financial or investment advisor.  All logos or brands are referenced for identification purposes only and do not constitute an endorsement of any kind. This information is accurate as of the date of publication and may not reflect recent changes.  Access our comprehensive legal disclaimers at musaffa.com/disclaimer.

Explore the Musaffa App to access the Sharia compliance status of stocks, in-depth reports, top investor portfolios, and more. Elevate your Halal investing experience with our stock forecasts and purification calculator.