The UK stock market spent Tuesday, 9 December 2025, in a cautious mood, with a handful of big names doing most of the damage.
The FTSE 100 slipped around 0.1% to roughly 9,640, its lowest close in about two weeks, as investors positioned for a crucial Federal Reserve decision and another Bank of England rate call.
While the index is still hovering near record highs for 2025, British American Tobacco, Chemring and Ashtead were among the standout losers today, and Monday’s sharp falls in Unilever, Barratt Redrow, JD Sports Fashion, Persimmon and Entain are still shaping sentiment.
Market snapshot: Cautious FTSE 100, weak consumers
Two big forces are driving London trading this week:
- Central banks: Markets expect another Fed rate cut this week, but there’s major uncertainty over how aggressive cuts will be in 2026. That’s keeping global bond yields elevated and equity valuations under pressure.
- Soft UK consumer data:
- Barclays reported card spending in November fell about 1.1% year‑on‑year, the sharpest drop since early 2021.
- BRC–KPMG data showed total retail sales up just 1.4% and like‑for‑like sales up 1.2% – the weakest growth in roughly six months – with Black Friday spending described as underwhelming.
That combination – central‑bank jitters plus cautious households – explains why defensives, housebuilders and consumer names have been under pressure, even as the headline index is not far from record territory.
1. British American Tobacco (BATS): Guidance cut at the margin, share price hit hard
Move today (9 December 2025)
- Price: ~4,160p
- Day move: roughly –3.5% to –4.5%, making BAT one of the biggest blue‑chip losers on the day.
What spooked investors?
British American Tobacco’s trading update tried to strike a reassuring tone but landed badly with the market:
- The group reaffirmed its 2026 medium‑term targets of 3–5% annual revenue growth and 5–8% EPS growth…
- …but warned that performance is now expected at the lower end of that range, citing a tougher outlook in parts of its heated‑tobacco and vaping portfolio.
- For 2025, management now expects roughly 2% revenue and adjusted profit growth, rather than anything more punchy.
- At the same time, BAT announced a £1.3bn share buyback for FY26, on top of its already hefty dividend, underlining its status as a high‑yield “bond proxy”. Investing.com Australia+1
Even though the numbers weren’t disastrous, the message was clear: growth will be slower than investors had hoped, and the stock sold off accordingly.
The investment debate now
Recent analysis notes that:
- BAT still generates huge cash flows and remains committed to progressive dividends plus buybacks.
- “New Category” products (vapes, heated tobacco, oral nicotine) are growing quickly, but regulatory uncertainty – especially in the US – makes forecasting tricky. MarketScreener+1
For income‑focused investors, the yield looks attractive, but today’s reaction shows how sensitive tobacco valuations are to even small downgrades to growth expectations.
2. Chemring Group (CHG): Cost overrun knocks a defence winner
Move today
- Chemring shares fell around 2–2.5%, underperforming a broadly flat market.
Strong results, awkward detail
On the face of it, Chemring’s full‑year numbers looked solid:
- Revenue rose about 2% to £497.5m.
- Underlying operating profit increased roughly 6% to £73–74m.
- The order book jumped about 20% to £1.34bn, with management saying demand from NATO states remains strong.
The problem? Investors latched onto higher‑than‑expected costs linked to an expansion project in Norway, which are set to squeeze margins in the near term.
Why the market still cares
Several analyses published today emphasise that:
- Around three‑quarters of Chemring’s 2026 revenue is already covered by the order book, giving unusually high visibility for a mid‑cap industrial.
- Defence spending by NATO governments remains elevated and is expected to stay strong “well into the next decade”, according to management commentary. Sharecast+1
So today’s drop is less about business collapse and more about short‑term margin disappointment after a strong run – but it still puts Chemring firmly on the list of UK losers on the day.
3. Ashtead Group (AHT): Solid but slower, plus a New York pivot
Move today
- Ashtead shares slipped roughly 1–1.5% to about 4,750p, another notable faller on the FTSE 100.
Interim results in focus
Ashtead’s half‑year update landed before the open:
- Revenue grew only about 1–2% in the first half.
- Operating profit fell around 9%, largely due to one‑off restructuring and relisting costs rather than a collapse in trading.
- The company announced a new US$1.5bn share buyback programme and a 4% rise in the interim dividend, trying to reassure shareholders that cash generation remains robust.
On top of that, Ashtead is preparing a shift of its main listing to New York, underlining a broader trend of UK heavyweights tilting toward US markets in search of higher valuations.
Why the shares still fell
Despite the buyback and the long‑term structural story (US infrastructure, construction, and rental equipment demand), investors focused on:
- Slower near‑term profit growth.
- The risk that a weaker US economy in 2026 could hit rental activity and utilisation rates.
Result: modest but meaningful selling, pushing Ashtead into the red on a broadly flat FTSE day.
4. Monday’s biggest fallers still set the tone
Even though some of Monday’s casualties stabilised or even bounced today, they remain central to the UK “top losers” story around 9 December.
Unilever (ULVR): Magnum spin‑off drama and share consolidation
On Monday 8 December, Unilever dropped about 6.6% to 4,160p, making it the worst performer on the FTSE 100 and dragging the whole index lower.
The sell‑off followed the completion of the demerger and separate listing of the Magnum Ice Cream Company, Unilever’s former ice‑cream arm:
- Magnum debuted in Amsterdam (with secondary listings in London and New York) at a valuation of roughly €7.8–8.0bn, significantly below the most optimistic pre‑spin estimates.
- Because Magnum is headquartered in the Netherlands, it does not qualify for FTSE UK index inclusion, forcing certain UK trackers that received shares to sell them. That index‑driven selling likely added to early volatility.
- Unilever also confirmed an 8‑for‑9 share consolidation, effective from today’s session, which mechanically adjusts the share price but often confuses investors in the short term.
Interestingly, live data this afternoon show Unilever actually rebounding strongly today, trading around 4,696.5p, up nearly 13%, as the new capital structure beds in and some of Monday’s panic unwinds.
But in performance tables and news coverage, Monday’s one‑day slump still leaves Unilever as one of the UK market’s biggest losers of the week so far.
Barratt Redrow (BTRW) and Persimmon (PSN): Rate‑sensitive housebuilders under pressure
On Monday’s close, housebuilders were hammered:
- Barratt Redrow fell about 4% to 363.2p.
- Persimmon dropped around 3.5% to 1,298.5p.
Key drivers:
- Rising bond yields have pushed up funding costs and reignited worries about the sustainability of the UK housing recovery.
- Citi cut its price target on Barratt Redrow from 530p to 506p, reinforcing the narrative of limited near‑term upside even as brokers still see scope for a “spring bounce” in 2026 if mortgage rates ease and planning conditions improve. Sharecast+1
Recent broker research highlighted today suggests:
- Persimmon now carries an average rating around “Moderate Buy”, with at least one major bank lifting its target price to roughly 1,800p, implying significant upside if volumes recover. TechStock²
In other words, fundamentals are not broken, but macro headwinds and higher yields keep both stocks in the losers’ column for now.
JD Sports Fashion (JD.): Profit guidance at the low end and weary consumers
JD Sports was another name on Monday’s top‑five fallers list, closing down around 3.8% to 79.6p.
The selling continues to reflect a November trading update in which the retailer:
- Guided full‑year profit to the lower end of market expectations, blaming weak demand and a discount‑heavy competitive landscape.
- Reported like‑for‑like sales down 1.7% in Q3, with declines in North America, the UK and Europe, partly offset by growth in Asia‑Pacific.
The fresh batch of weak UK retail data today – especially the soft Black Friday numbers – only reinforces concerns about the Christmas trading period for discretionary retailers like JD.
Entain (ENT): Tax overhang and valuation reset
Entain, owner of Ladbrokes and Coral, was the fifth‑largest FTSE 100 faller in Monday’s session, dropping a little over 3% to about 735p.
The bigger story is tax and regulation:
- In late November, Chancellor Rachel Reeves confirmed a major hike in UK gambling duties, almost doubling the remote gaming duty from 21% to 40% by 2026 and raising general betting duty on online sports bets.
- Entain’s own statement warned that the changes could cut annual earnings by £100–150m in 2026–27, forcing cost cuts and marketing reductions.
Recent research notes have trimmed fair‑value estimates but still argue that Entain’s US joint venture, BetMGM, and international operations could drive long‑term growth once the tax shock is absorbed.
For now, though, higher taxes plus regulatory uncertainty keep the stock on many investors’ “avoid” list, leaving it among the notable UK losers around today’s date.
What today’s losers tell us about the UK market
Looking across all these moves – BAT, Chemring, Ashtead, Unilever, the housebuilders, JD Sports and Entain – a few clear themes emerge:
- Macro still rules the tape
- Rate expectations for 2026 and bond‑yield moves are steering sector rotations. Rate‑sensitive areas like housing, property and consumer discretionary remain volatile.
- High‑yield defensives are not risk‑free
- BAT’s slide shows that even “safe” income stocks can sell off sharply when growth guidance is nudged lower, especially after strong year‑to‑date performance. MarketScreener+1
- Spin‑offs and restructurings can be bumpy
- Unilever’s Magnum demerger and share consolidation created short‑term confusion and forced index‑linked selling before today’s rebound – a reminder that corporate actions often bring volatility before value is unlocked.
- Defence remains structurally strong despite wobbles
- Chemring’s cost overrun hurt the shares today, but a record order book and persistent NATO demand underline why defence has been one of the FTSE’s most resilient themes in 2025.
- Consumer weakness is the soft spot
- From JD Sports to parts of Unilever’s and BAT’s portfolios, UK and global consumers are still feeling the squeeze, and markets are quick to punish any hint of slowing volumes or narrower margins.
Important note
This article is for information only and does not constitute investment advice. Markets move quickly, and individual circumstances matter. Anyone considering investing in the companies mentioned should carry out their own research or speak to a regulated financial adviser.
