M&S is set to re-enter the FTSE 100 after its shares soared to a 19-month high following its trading update on Tuesday.
The retailer expects to deliver increased profits this year, having originally anticipated a small decline.
It said its half-year results will “show a significant improvement against previous expectations”.
M&S shares jumped as much as 9% on Tuesday, putting it on course to be promoted into the FTSE 100 index in the next reshuffle, after its market capitalisation topped £4.3bn.
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It would be the first time in four years that M&S has joined the blue-chip index after the retailer was dropped in 2019 as it scrambled to push up profits after closing hundreds of stores.
Shore Capital research director Clive Black: “If the legs keep whirling in the right direction, then more material appreciation could follow, along with a return to the FTSE 100.”
The retailer posted an 11% jump in food sales in the 19 weeks to 12 August. Clothing and home sales were also up, growing 6% over the period.
Its shares have rocketed more than 70% since the start of the year.
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