Street cheer helped push the FTSE 100 to a record high yesterday amid fresh signs the economy is recovering.
In another record day on the London stock market, the FTSE 100 rose to a high of 8,076.52 in early trading, its highest level ever.
The index subsequently closed up 0.3 percent, or 20.94 points, to 8,044.81, eclipsing the previous record set just a day earlier.
The rally was led by a bumper update from Primark owner AB Foods, while shares in JD Sports rose after it bought a US rival for around £900m.
Online grocer Ocado also made a profit after a rise in sales over the past three months.
Sales boost: Shares in Primark owner AB Foods rose 9% to a six-year high after it said Primark’s profits rose 45% to £508m in the six months to end of March.
In a separate report, S&P Global said its UK private sector activity index rose from 52.8 in March to 54 this month.
That was the strongest reading in 11 months and well above the 50 threshold between growth and decline, fueling hopes that the economy has recovered strongly from the recession late last year.
Jason Hollands, CEO of online investment platform Bestinvest, said: ‘The news is a little less bleak as London’s blue-chip index hits new records.
‘And it’s about time, as UK shares have endured a long negative narrative around investor exits, companies relisting overseas and underperforming the more interesting US market. Could this new record usher in a new dawn for UK equities?
AB Foods shares rose 9 per cent to a six-year high after it said profits at Primark rose 45 per cent to £508 million in the six months to the end of March thanks to a 7.5 percent in revenue to £4.5 billion.
Business was boosted by higher prices and new store openings, which helped offset a slow start to the period due to unusually warm weather over the winter.
The return of tourists and office workers to city centers helped sales in London’s Oxford Street, Edinburgh and Birmingham. His collaboration with pop singer Rita Ora also proved popular.
Sales at AB Foods group, which also owns grocery brands such as Ryvita, Twinings and Ovaltine, rose 2 per cent to £9.7 billion and profits rose 39 per cent to £951 million.
The company said it was “on track to achieve significant growth” for the rest of the year.
And in a boost for the City as other companies look to list their shares elsewhere, AB Foods chief executive George Weston said: “We feel very comfortable listing in London, we have been trading here for 70 years.”
Russ Mould, investment director at AJ Bell, said: “A rise in AB Food shares to their highest level since 2018 may be indicative of a change in mood in London.”
Investors also applauded JD Sports after it agreed to buy US rival Hibbett for £899m, with a view to expanding across the Atlantic.
Chief Regis Schultz said the deal will accelerate JD’s growth in the United States, where Alabama-based Hibbett has 1,168 stores and sells brands such as Nike and Adidas.
Danni Hewson of AJ Bell said: “The lackluster performance of UK markets in recent years has resulted in a wave of US companies snapping up cheap British companies, so it’s a nice change of pace to see how JD moves in the other direction.’