Equities Update: Gold, UK miners, Nike, AG Barr, Card Factory, ASOS…

Gold miners finally shine as retail sentiment turns

Lale Akoner, global market analyst, says: “Gold at record highs is anchoring confidence not just in the metal itself, but in miners’ earnings outlook. According to the latest Retail Investor Beat by trading and investment platform eToro, gold continues to feature as a top alternative asset for diversification, with a growing share of retail investors seeing it as a hedge against heightened inflationary pressures, geopolitical and currency risk.

“That confidence now seems to be spilling into gold miners. After lagging bullion for the past two years, miners are catching up. Inflationary pressures, weak historical performance, and a preference for ETFs had kept equities subdued despite bullion’s surge. The miners’ index trades at around 30x trailing earnings, well below last year’s peak of 45x, suggesting that fundamentals are catching up with price momentum. Rising margins and tighter cash flow discipline are reassuring investors that miners can finally deliver the long-promised leveraged upside to gold.

“Overall, we believe that confidence in gold is broadening from the metal itself to the miners, signalling a sentiment shift that may extend the rally beyond bullion itself.”

UK mining majors will continue to struggle as China factory slump drags on

Lale Akoner, global market analyst, says: “London-listed miners are still feeling the chill from China’s continued slowdown. Rio Tinto’s H1 earnings fell 16% as iron ore prices stayed subdued and it cut its dividend to the lowest in seven years. Glencore swung to a $655m loss as coal prices collapsed, while Anglo American posted a $1.9bn loss and slashed its dividend to just $0.07 per share amid restructuring.

“The latest China PMI underscores why: factory activity improved slightly in September but stayed below 50 for a sixth straight month, marking the longest slump since 2019. Weak domestic demand and tariffs are capping steel output, keeping pressure on iron ore and coal prices which are the lifeblood of UK mining earnings.

“We think that while miners look cheap, without a stronger China recovery, dividends and share prices will stay under pressure. For retail investors, patience is key: the sector could offer upside only once Beijing’s stimulus or a real demand rebound materialises.”

Nike: Recovery Will Take Time

Lale Akoner, Global Market Analyst says: “Nike may beat expectations this quarter, but the real issue is forward guidance. Tariffs and slower sales recovery are set to pressure margins through 2026. Wholesale restocking is improving, but not enough to offset near-term weakness.

“We ultimately think that investors looking for a quick rebound will likely be let down. Nike’s reset actions are essential to clean up its marketplace and protect long-term brand value, but they come at the cost of growth today. The real upside looks more likely from 2027 onward, when new product cycles and stepped-up marketing can drive healthier growth. Until then, the risk/reward skews cautious, as short-term gains are limited, and the stock is priced ahead of fundamentals.”

A.G. Barr shares fizz to six-year high on strong profit growth

Mark Crouch, market analyst for eToro says: “In 2025 A.G. Barr shares climbed to their highest level in six years after the company delivered a solid interim performance, marked by strong profit growth, margin expansion and continued strategic focus. As group revenue rose and Soft Drinks up 3.3%, it was supported by a standout performance from Boost, which delivered double-digit growth. Core brands including IRN-BRU and Rubicon also contributed to resilient topline momentum.

“The company’s thirst for innovation continues, acquiring a majority stake in functional beverage start-up Innate-Essence, while exiting Strathmore to sharpen its capital allocation. Even post-acquisition, a robust £41.3m net cash position underscores Barr’s strong, cash-generative model.

“With an 11% dividend hike, shareholders have every reason to raise a glass. With the effects of the pandemic now a distant memory, Barr is serving up brilliantly strong numbers. And with a brand-led, margin-savvy portfolio, now tapping into higher-growth wellness and energy categories, it keeps this stock refreshingly attractive.”

Card Factory’s digital expansion squeezes profits

Adam Vettese, market analyst for eToro says: “Card Factory’s interim results paint a picture of a retailer determined to grow, but increasingly challenged by inflationary pressures and cautious consumer behavior. The company continues to deliver impressive top line growth, with revenue up nearly 6%, supported not just by its value-led proposition and expanded gifting ranges but also by its strategic acquisition of Funky Pigeon. This £24 million purchase adds significant digital capability, strengthening Card Factory’s position in the fast-growing online personalised card and gifting market.

“However, profit margins have been squeezed by rising costs, resulting in a steep decline in statutory earnings this half. Despite these headwinds, Card Factory has demonstrated reliable operational cash generation and remains committed to its dividend, highlighting the resilience of its business model. The group’s expanding market share and disciplined working capital management are clear positives, but higher debt levels and a sluggish recovery in profitability call for vigilance.

“Overall, Card Factory offers investors a play in UK retail with proven consumer appeal, but margin improvement and digital integration will be key to reigniting momentum.”

ASOS cost reduction efforts bear fruit

Chris Beauchamp, Chief Market Analyst at IG: “It’s clear from this morning’s update that ASOS’s long journey out of its post-Covid nightmare is starting to bear fruit. Restructured debts and lower inventory costs make it a much leaner operation. There are signs that profitability is picking up too, though the push to boost sales remains hampered by tougher times for consumers generally. Now it needs to show it can recapture the affections of its once-adoring customer base.”