Wm Morrisons’ shares reached the highest level since its takeover of Safeway two years ago, after it posted better than expected results last week.
Shares went up by 18p, or 7.7%, to 251½p, as it revealed profits of £134.2 million in the six months to 23 July, ahead of expectations.
New chief executive Marc Bolland promised to reveal his strategy for the business in March after completion of a review. He said he would consider all aspects of the retailer including how to improve smaller store profitability and product ranges.
Analysts now expect Morrisons to make pre-tax profits of about £281m for the full year.