Assalamu Alaykum,
Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the UK from March. Let’s get started.
Stock market updates
March brought a slight pullback for UK markets. The FTSE 100 Index declined by 1.05%, closing at £8,582, while the FTSE All-Share Index fell by 1.85% to end the month at £4,623. After recent gains, investor caution and broader market pressures led to a modest dip across key UK indices.
- UK homebuilder Bellway reported a 12% rise in half-year profit, driven by lower mortgage rates and improved consumer confidence, boosting home sales. The company’s shares rose 3.5% following the announcement, and it increased its dividend payment.
- AstraZeneca is set to invest $2.5 billion in a new R&D center in Beijing, expanding its footprint in China despite recent scrutiny over import duties. The facility, developed in partnership with Beijing’s government and biotech firms, will bring AstraZeneca’s Beijing workforce to around 1,700 employees.
- Smiths Group reported strong half-year results, driven by organic growth and improved margins, and announced the acquisition of U.S.-based Duc-Pac for £32 million. The company recorded a 9.1% organic revenue increase and a 12.6% rise in headline operating profit, expanding its organic operating margin to 16.7%.
- AstraZeneca is acquiring Belgian biotech firm EsoBiotec for up to $1 billion, aiming to revolutionize cell therapy. EsoBiotec’s in vivo platform enables IV-administered genetic programming of T cells to recognize and attack cancer cells, eliminating the need for traditional in vitro modification.
Top gainer and top loser Halal stocks in the UK
UK Economic updates
- The UK housing market slowed in February, marking its weakest month since late 2023, according to a RICS survey. Buyer demand dropped to its lowest since November 2023 as the rush to close deals before tax breaks expired faded. The net balance of house prices fell to +11, down from +21 in January and a two-year high of +25 in December, missing economists’ expectations.
- The British steel industry is urging the government to address high electricity prices, which are up to 50% higher than those in Germany and France. The sector, already facing a 25% U.S. export tariff, argues that uncompetitive energy costs threaten jobs and national steel production. The government, which has launched a £2.5 billion steel sector strategy, claims it is already working to align energy costs with global competitors.
- The Resolution Foundation warns that UK finance minister Rachel Reeves is facing a £4.4 billion fiscal shortfall due to weaker economic growth and higher interest rate expectations. This marks a sharp shift from last autumn’s projected £10 billion surplus.
- British shop prices fell by 0.4% in March, a slower decline than February’s 0.7% drop, as retailers brace for cost pressures from higher employer taxes and other expenses. The British Retail Consortium warns that inflation could accelerate in the coming months, with food prices already up 2.4% year-on-year due to rising duties and global sugar costs.
- The UK’s economic growth forecast for 2025 has been cut in half to 1.0% by the Office for Budget Responsibility (OBR), down from its previous 2.0% estimate. Growth is expected to pick up to 1.9% in 2026, with an average of 1.8% annually thereafter.
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