MARKET REPORT: Shares soar after bumper day of corporate results as central banks put rates on hold

The London stock market surged higher yesterday as morale was boosted by a bumper day of corporate results and growing hopes that interest rates have peaked.

On a much-needed day of respite for investors, the FTSE 100 rose 1.4 per cent, or 104.10 points, to 7446.53 while the more domestically-focused FTSE 250 was up 3.4 per cent, or 581.41 points, to 17,767.30 as it clocked up its best session since July.

The rally came after the US Federal Reserve on Wednesday held benchmark borrowing costs at their highest level for 22 years.

The Bank of England followed suit yesterday as officials on Threadneedle Street kept interest rates at a 15-year high of 5.25 per cent.

That has fuelled hopes that interest rates may have peaked, while a flurry of bullish updates from Britain’s mid-cap stocks also lifted the mood.

On a much-needed day of respite for investors, the FTSE 100 rose 1.5%, or 107.47 points, to 7,449.90 while the more domestically-focused FTSE 250 was up 3.1%, or 526.94 points

Shares in One Savings Bank –now known as OSB Group – rose 16.1 per cent, or 46.4p, to 334.8p after it reported a 7 per cent rise in its loan book to £25.2billion in the first nine months of the year.

As a result, OSB expects its loan book to grow by 9 per cent this year, up from its previous target of 7 per cent.

Also on the rise was Trainline – up 8.1 per cent, or 21.4p, to 284.2p – after it said ticket sales increased by nearly a quarter to £2.6billion in the six months to the end of August.

That pushed up revenues by 19 per cent to £197million.

And Helios Towers, the phone masts operator which is focused on Africa and the Middle East, gained 7.1 per cent, or 4.35p, to 65.8p after a solid third quarter.

Revenues at TI Fluid Systems, which makes cooling systems for brakes in cars, climbed 12.4 per cent to £2.3billion in the first nine months of this year on the back of strong growth across Europe, Africa and North America.

The shares increased 5 per cent, or 6.2p, to 130.2p.

Stock Watch –  Audioboom

Audioboom rose 13.2 per cent, or 17.5p, to 150p after its podcasts created more than 1bn monthly advertising impressions for the first time.

It hit that milestone in October on the back of a tool that allows creators to remove old ads and replace them with new ones every time an older episode is played.

Last month it delivered its highest monthly revenue so far this year. And in the third quarter its podcast downloads rose 18 per cent to more than 127m each month.

It was an impressive session too for Derwent London after the property firm said it has signed new leases worth £27.8million so far this year. Shares gained 8.6 per cent, or 159p, to 2004p.

However, a handful of updates soured the mood.

Haleon third-quarter revenues of £2.79billion fell short of the £2.83billion analysts expected.

The consumer health group, whose brands include Sensodyne, Advil and Panadol, was hit by weak demand for its painkillers, digestive health and vitamin supplements in North America.

Haleon’s shares fell 3.3 per cent, or 10.9p, to 320.2p.

Hikma Pharmaceuticals slid 4.4 per cent, or 84.5p, to 1835.3p after its US business also slowed.

And Howden Joinery dropped 2.8 per cent, or 18.2p, to 625.4p after the kitchen supplier warned its results are likely to be at the bottom end of market expectations amid the ongoing economic turmoil.

Medical devices group Smith & Nephew gained 4.2 per cent, or 38.6p, to 962p after it raised its annual forecasts on the back of a recovery in its orthopaedics business which specialises in knee and hip implants.

That helped group sales increase 7.7 per cent to £1.11billion in the third quarter, meaning Smith & Nephew now expects revenues for 2023 to grow towards the higher end of its 6 per cent to 7 per cent range.

It also hired a new finance boss, John Rogers, who held the same job at the advertising giant WPP as well as Sainsbury’s.

The next finance boss at British American Tobacco will be a familiar face.

Soraya Benchikh worked at the smoking giant for two decades before spending the past three years at Diageo.

She return to take up her new role in May. The company’s shares rose 1.5 per cent, or 36p, to 2511p.

This post first appeared on Dailymail.co.uk