By Jack Barnett
London’s FTSE 100 kicked higher today, driven by middle class favourite and online supermarket Ocado being goosed after it said it was partnering with a South Korean retailer.
The capital’s premier index climbed 1.29 per cent to 7,186.16 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the UK economy, added 1.71 per cent to 18,195.90 points.
Investors piled into Ocado after it announced it has struck a deal with Lotte Shopping to build robotic warehouses, used to select items for delivery ordered by customers online.
The deal sent its shares skyrocketing more than 38 per cent today to the top of the FTSE 100.
“Ocado’s fulfilment tech is world class and plans to develop a network of centres gave its investors some much needed cheer,” Danni Hewson, financial analyst at AJ Bell, said.
Under the terms of the Lotte tie up, Ocado cannot partner with other major supermarkets in South Korea. Analysts also said it will take some time before the partnership yields meaningful profits.
Its shares are still down more than 60 per cent this year.
Just a handful of companies listed on the premier index notched losses today on a good day of trading in the City.
Miners led the way, with Anglo American, Glencore, Antofagasta and Rio Tinto all up more than 4.3 per cent.
Yields on UK debt dropped today despite the Bank of England successfully selling £750m of government bonds as it started shrinking its balance sheet.
The pound was broadly flat against the US dollar.
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