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

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

In a day of much-needed respite for investors, the FTSE 100 rose 1.4 per cent, or 104.10 points, to 7,446.53, while the more domestically focused FTSE 250 rose 3.0 per cent, or 104.10 points, to 7,446.53. 4 percent, or 581.41 points, to 17,767.30 while recording its best session since July.

The rally came after the U.S. Federal Reserve on Wednesday kept benchmark borrowing costs at their highest level in 22 years.

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

This has fueled hopes that interest rates have peaked, while a flurry of bullish updates on British mid-cap shares also lifted spirits.

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 £ £25.2 billion in the first nine months of the year.

As a result, OSB expects its loan portfolio to grow 9 percent this year, up from its previous target of 7 percent.

Trainline also rose – up 8.1 per cent, or 21.4p, to 284.2p – after it said ticket sales rose by almost a quarter to £2.6bn in the six months until the end of August.

That lifted revenues by 19 per cent to £197 million.

And Helios Towers, the phone mast operator focused on Africa and the Middle East, gained 7.1 per cent, or 4.35 pence, to 65.8 pence after a strong third quarter.

Revenue at TI Fluid Systems, which makes cooling systems for car brakes, rose 12.4 per cent to £2.3bn in the first nine months of this year thanks to strong growth in Europe, Africa and the Americas from North.

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

It was also an impressive session for Derwent London after the property company said it has signed new leases worth £27.8m so far this year. The shares gained 8.6 per cent, or 159 pence, to 2,004 pence.

However, a handful of updates ruined the mood.

Haleon’s third-quarter revenue of £2.79 billion fell short of the £2.83 billion expected by analysts.

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

Haleon shares fell 3.3 per cent, or 10.9 pence, to 320.2 pence.

Hikma Pharmaceuticals fell 4.4 per cent, or 84.5 pence, to 1,835.3 pence after its US business also slowed.

And Howden Joinery fell 2.8 per cent, or 18.2p, to 625.4p after the kitchen supplier warned its results were likely to be at the lower end of market expectations amid the current turmoil economical.

Medical device group Smith & Nephew gained 4.2 per cent, or 38.6 pence, to 962 pence after it raised its full-year guidance thanks to a recovery in its orthopedics business, which specializes in knee and hip.

That helped group sales rise 7.7 per cent to £1.11bn in the third quarter, meaning Smith & Nephew now expects 2023 revenue to grow towards the top end of its range. 6 percent to 7 percent.

It also hired a new finance chief, John Rogers, who held the same role at advertising giant WPP and Sainsbury’s.

British American Tobacco’s next finance chief will be a familiar face.

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

He will return to take up his new role in May. Shares in the company rose 1.5 per cent, or 36 pence, to 2,511 pence.