London midday: FTSE extends losses; Airtel Africa tumbles

18th Sep 2026 11:04

(Sharecast News) - London stocks had extended losses by midday on Friday following strong gains in the previous session, with BP and Shell under the cosh as oil prices eased, and as investors mulled a rebound in UK retail sales.

The FTSE 100 was down 0.7% at 10,743.21, while Brent crude was off 1.9% at $102.80 a barrel and West Texas Intermediate was 1.2% lower at $100.67.

Russ Mould, investment director at AJ Bell, said: "Revived hopes for a resolution to the crisis in the Middle East have helped sustain a recovery in global equities but European stocks took a pause for breath on Friday.

"The FTSE 100 wasn't helped by its heavy weighting in energy as BP and Shell reacted to further falls in the oil price. Brent crude declined for a third consecutive session, even if it remains stubbornly above the $100 per barrel alarm bell mark.

"A pullback in oil has dialled down fears about inflation and helped government bond yields ease from their recent multi-year highs.

"We have seen this story play out in microcosm multiple times over the months since the Iran conflict started in February, with a more concerted move lower for oil likely to require more solid evidence of diplomatic progress in the short term.

"However, there will be relief that equity markets have successfully navigated a week where the US Federal Reserve put up rates and the Bank of England kept its powder dry but signalled clearly that a UK rate hike might not be far away.

"Some weakness in the dollar helped gold prices, with a weaker US currency making the precious metal cheaper for non-dollar buyers, and this supported gold mining stocks in London.

"Banks and investors in global tech firms were among the other names making progress on the UK market in early trading. Strong retail sales numbers failed to inspire gains among retailers, with investors mindful of the ongoing risks to consumer sentiment."

Figures released earlier by the Office for National Statistics showed that retail sales unexpectedly bounced back in August.

Sales rose 0.5% on the month following a 0.5% decline in July, beating expectations for a 0.2% fall. On the year, sales were 2.4% higher in August.

In the three months to August, sales were up 0.9%, the ONS said, with warm weather lifting sales of items such as fans and air conditioning units, and retailers also benefitting from sales of sports merchandise and clothing.

ONS senior statistician Jon Gough said: "Retail sales increased in the latest three months, with a particularly strong June for online outlets helping to boost their sales across the period. Food store sales also rose, with supermarkets doing well in July and August.

"Meanwhile, retailers selling alcohol and beverages performed well across all three months, which they attributed to promotions, the hot weather and the World Cup."

Investors were also mulling an expected 25 basis points rate hike by the Bank of Japan to 1.25% - the highest level since 1995. The decision was split 7-2.

The BoJ said in a statement: "As for the future conduct of monetary policy, given that underlying CPI inflation has been approaching 2% and financial conditions have been accommodative, the Bank will continue to raise the policy interest rate and adjust the degree of monetary accommodation, in response to developments in economic activity and prices as well as financial conditions."

In equity markets, BP and Shell fell in tandem with oil prices, while Airtel Africa tumbled following a report that Airtel Money is considering raising less money than previously sought in its initial public offering.

According to Bloomberg, which cited people familiar with the matter, the money transfer and payments company's IPO is now expected to raise at least $800m, down from a previously targeted size of $1.5bn to $2bn as reported by Bloomberg in April.

Sources told Bloomberg that Airtel Money is now considering a valuation of $8bn to $9bn to align with technology stock valuations, lower than the $10bn sought previously. The firm's valuation in the offering was reduced following feedback from investors, according to Bloomberg.

Airtel Money is part of Airtel Africa, with Qatar Holdings and Mastercard among the minority investors.

Elsewhere, banking and wealth management group Investec was in focus as it said first-half results were set to be in line with the guidance given in May.

Outside the FTSE 350, Mothercare shares tanked as the retailer warned of an "uncertain" future after its leading Middle East franchise partner said it would be closing most of its stores.