MARKET REPORT: FTSE 250 surges amid easing inflation hopes

The FTSE 250 enjoyed its best day since July amid growing hopes inflation will ease in the UK.

London’s mid-cap index, which is more domestically focused and exposed to the British economy, surged 3.47 per cent, or 622.48 points, to 18,536.13.

It clocked up its biggest gains since July 19 when it climbed 3.78 per cent following upbeat inflation figures. Yesterday’s rally came as inflation in the US fell faster than expected last month in a sign the US Federal Reserve will end its interest rate hikes.

On Wall Street, the Dow Jones Industrial Average rose 1.4 per cent, the S&P 500 gained 1.9 per cent and the Nasdaq added 2.4 per cent.

It also fuelled hopes over the UK’s prospects, with today’s official figures expected to show inflation fell below 5 per cent in October.

DCC’s energy business landed its biggest deal in Germany after it agreed to buy Progas, a distributor of liquefied petroleum gas for around £140m

Danni Hewson, head of financial analysis at AJ Bell, said: ‘Markets on both sides of the Atlantic rallied as expectation mounted that America’s fight against rising prices is pretty much over, and despite a few bumpy patches the landing strip ahead looks about as soft as anyone could have hoped for.’

Back in London, the FTSE 250 was also lifted by a handful of positive updates.

The index’s biggest riser was the science investor IP Group after Autifony, which was spun out of GSK (down 1.7 per cent, or 23.8p, to 1383.4p) in 2011, signed a global licensing deal with Nasdaq-listed Jazz Pharmaceuticals worth up to £617million. Shares surged 11.4 per cent, or 5.2p, to 50.9p.

It was a good day for Babcock shareholders after the defence group said it will pay out its first dividend in four years as it cashes in on the rising geopolitical tensions. 

Shares added 3.9 per cent, or 15.8p, to 425.4p. Safety barrier maker Hill & Smith said its annual profit should beat the £118.6million pencilled in by analysts.

The upgraded outlook came after the group’s revenue rose 15 per cent in the four months to the end of October. Shares ascended 5.5 per cent, or 96p, to 1854p.

London’s top tier also made gains with the FTSE 100 up 0.20 per cent, or 14.64 points, to 7440.47.

Stock Watch –  Renalytix

Shares in Renalytix tumbled after a bleak set of results.

The diagnostics group has created a test that can identify patients with Type-2 diabetes who are at high risk of rapid progression of kidney disease.

But first quarter revenues at the firm halved to £400,000 in the three months to the end of September compared with the same period last year.

As a result, Renalytix said that it aims to cut its wage bill by more than 35 per cent.

Shares tumbled 26.7 per cent, or 10p, to 27.5p.

Irish conglomerate DCC Energy expanded its footprint in Europe’s largest energy market.

The blue-chip company’s energy business landed its biggest deal in Germany after it agreed to buy Progas, a distributor of liquefied petroleum gas (LPG), for around £140million. 

The deal followed a stand-out first-half performance from DCC Energy, which raked in bumper profits despite lower commodity prices hitting revenues.

Shares gained 12.5 per cent, or 582p, to 5248p.

Ocado surged 10.1 per cent, or 51.8p, to 564.6p as the online grocer clawed back some of its losses.

Land Securities pinned its hopes on cashing in on the opportunities in commercial real estate next year as the property landlord expects ‘higher for longer’ interest rates to become normalised. Shares climbed 6.5 per cent, or 39.4p, to 644.4p.

Tobacco giant Imperial Brands was full of good news after its annual profit rose by more than a quarter and shareholders were rewarded with an increased dividend and share buyback. Shares added 0.8 per cent, or 13.5p, to 1801.5p.

Exhibitions organiser Informa upgraded its revenue and profit forecasts for this year and extended its share buyback programme as business boomed.

Shares in the group, which is behind events such as the Dubai Airshow, China Beauty Expo and London Tech Week, rose 5.3 per cent, or 37.4p, to 739.4p.

Revenues at the colostomy bag maker Convatec rose 6.7 per cent in the ten months to the end of October. 

Such growth means it now expects revenue to increase between 6.75 and 7.5 per cent – up from a previous forecast of 6 per cent and 7.5 per cent. Shares rose 5.2 per cent, or 10.8p, to 219.4p.

This post first appeared on Dailymail.co.uk