Marks & Spencer is on track to re-enter the FTSE 100 after shares jumped to a 19-month high as it revealed turnaround efforts were paying off.
The retailer said it expects to post increased profits this year, having previously forecast a decline, pushing shares up as much as 9% yesterday.
It said its interim results would be a "significant improvement against previous expectations".
The jump in its stock puts M&S on course to be promoted into the blue-chip index in the next reshuffle, after its market capitalisation surpassed £4.3billion.
The Telegraph says it comes almost four years after it was ejected from the FTSE 100 for the first time in its history as it scrambled to shore up profits by shutting hundreds of stores.
M&S had been among the founding members of the index established in 1984.
Material appreciation
Clive Black, research director at Shore Capital, which is M&S's house broker, said: "If the legs keep whirling in the right direction, then more material appreciation could follow, along with a return to the FTSE 100."
Shares closed last night just above 218p - up more than 72% for the year to date.
M&S will need to become at least the 90th most-valuable listed company on the London Stock Exchange to return to the FTSE 100 in next month's reshuffle.
The company posted a 6% jump in clothing and home sales during the first 19 weeks of its financial year as it discounted fewer items than expected. Comparable food sales rose by 11% during the same period.
The surge in M&S's value suggests investors are putting faith in the firm's revival plan, which is being spearheaded by chief executive Stuart Machin.
He has been pushing to reverse M&S's ailing clothing and homeware divisions and make them as strong as its food offering.
Clothing market
In January, figures from Kantar revealed M&S's share of the clothing market was the highest it had been in almost eight years.
RBC analysts said the business had recently benefited from a "better offer and execution".
The performance has been boosted by M&S selling more third-party brands in its stores, including Hobbs and Jaeger.
At the same time, M&S has been overhauling its retail estate, updating older stores and increasing the number of standalone food halls by more than 100.
It wants 180 larger stores that stock clothing and homeware, down from 247.
The food business has been buoyed by M&S expanding its range, while there has also been "improved value-for-money perception", RBC analysts said.
FTSE 100
The UK's top share index, the FTSE 100, was down 21 points at 7,367 shortly after opening this morning, following yesterday's 117-point fall as soaring wages sparked inflation concerns.
Brent crude futures were 0.47% lower at $84.49 a barrel.
Companies reporting today
- Half-year results: Admiral Group, Aviva, Balfour Beatty