MARKET REPORT

THE FTSE 100 surged higher yesterday amid renewed hopes that US-China trade talks will result in a positive outcome.

London’s premier index hit its highest level in four months, following US peers and closing the day up 57.7 points, or 0.81%, at 7,190.84.

In stocks, Whitbread rose towards the top of the FTSE 100 after unveiling plans to return another £2bn to investors following its £3.9bn sale of Costa Coffee.

The Premier Inn owner also plans to slash costs by a further £220m and potentially double the hotel chain’s size to more than 170,000 rooms, including at least 110,000 in the UK.

Whitbread shares were up 138p, or 2.9%, at 4,901p.

Dunelm’s stock was riding higher after the retailer reported a 24% increase in pre-tax profit for the six months ended December 29 to £70m.

Revenue rose 1.2% to £551.8m with like-for-like revenue growth of 6.9%, which was bolstered by online sales growth.

Shares closed up 22p, or 3.1%, at 739p.

The biggest risers on the FTSE 100 were Smurfit Kappa up 158p at 2,424p, DS Smith up 15p at 351p, Coca Cola HBC up 81p at 2,694p and Rolls-Royce up 28p at 941.6p.

The biggest fallers on the FTSE 100 were Tui down 56p at 830.8p, Ocado down 24p at 924.8p, Tesco down 4.3p at 219.2p and Morrisons down 3.35p at 236.25p.