The FTSE Finish Line - Monday, Aug. 18

By Patrick Munnelly of Tickmill

Monday, August 18, 2025 2:56 PM EST

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The average price for properties entering the market fell by 1.3 percent month-over-month in August, aligning with the ten-year average. Rightmove noted that reduced asking prices, coupled with a positive selection for buyers, are sustaining sales activity, leading to the most successful July for sales agreed since the post-lockdown market in 2020. The Bank of England's third interest rate reduction has further boosted buyer confidence and affordability, according to Rightmove. However, the unexpectedly close vote within the monetary policy committee in August has created some uncertainty regarding a potential fourth rate cut later this year. During the August session, the committee voted 5-4 to lower the bank rate by 25 basis points to 4.00 percent.

Bootmaker Dr Martens rises 11.1% to 83p, becoming the top gainer on the FTSE mid-cap index, which sees a 0.2% increase. Peel Hunt has upgraded its rating to "buy" from "add" and has increased the price target from 80p to 112p. The firm notes that progress is being achieved under the new management's more customer-focused strategy while still maintaining attractive margin structures and strengthening the balance sheet. DOCS is up 3.5% this year, based on the last close.
Shares of Babcock, a British engineering company, have increased by almost 5% to 1,042p. RBC Capital Markets has begun coverage with an "outperform" rating and a price target of 1,200p. They highlight Babcock as a much-improved enterprise after years of restructuring, though its valuation is still significantly lower than that of its competitors in the European defense sector. The brokerage emphasizes the company's strong relationships with the UK Ministry of Defence, extensive engineering expertise, and ownership of crucial infrastructure as key factors contributing to business stability and visibility. RBC states, "Together with a capable management team and effective execution, this creates strong prospects for success across a promising array of opportunities in the UK and internationally." The average rating from nine analysts is "buy," with a median price target of 1,180p, according to data from LSEG. As of the last closing, Babcock's stock has risen nearly 107% year-to-date.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 9000