UK’s midcap index jumps, hits two-week high

The blue-chip FTSE 100 closed flat, while the domestically-focused FTSE 250 rose 0.9%, logging its fourth straight session of gains

The UK’s midcap index jumped on Thursday, hitting its highest in two weeks, a day after Finance Minister Rachel Reeves announced a big tax-raising budget.

The blue-chip FTSE 100 closed flat, while the domestically-focused FTSE 250 rose 0.9%, logging its fourth straight session of gains.

Demand for new homes could gradually recover next year, giving British homebuilders a much-needed boost, analysts and some investors said after Wednesday’s budget cleared uncertainty that held buyers back.

Shares of homebuilders were up 2.1%, with Berkeley, Barratt Redrow and Persimmon adding between 1.3% and 3.1% after dropping in the previous session.

Beverages stocks rose 1%, with Diageo advancing 1.5%. Utilities increased 0.9%.

The real estate sector rose 0.9%. Swiss bank UBS said Wednesday’s budget was good news for real estate stocks.

British Land added 2.7% while Segro increased 1.6%. Heavyweight banks rose 1.1% with Barclays and NatWest Group gaining 1.7% and 2.3% respectively.

On the flip side, the pharma sector shed 0.8% with AstraZeneca dropping around 1%.

Industrial miners declined with Rio Tinto down 1.9%. Energy stocks slipped 0.7%. BP slid 1.3%.

Among other moves, shares of British gambling firms dropped. Evoke PLC shed 4.1% and Rank Group shed 9.3%, reversing Wednesday’s rebound, after both companies warned that the plan to hike taxes on online gaming would hit profits.

However, gambling tech firm Playtech gained 8.6% and the company said it remains confident of meeting market expectations for 2026.

Unite Group dropped 3.5% after the student accommodation developer warned of lower earnings in 2026.

Online fashion retailer Debenhams soared 57.8% on an upbeat profit forecast.