Ocado has surged to the top of the FTSE 250 after the online retailer announced it had secured a delivery deal with a European retailer to set up an online grocery service.
Ocado’s shares rose 5% in early trading as investors hailed the firm’s first overseas deal, which it had originally pledged to secure by the end of 2015.
Ocado did not name the retailer or say how much the deal was worth.
The wider FTSE 100 was flat, ticking up just 0.02% at 7,549.10.
Neil Wilson, analyst at spread betting firm ETX Capital, said it was still unclear what value the deal would bring to Ocado.
“We don’t even know who the company is – Ocado simply dubs it a ‘regional’ retailer (not a national one). This is progress after a lot of promises, but it’s not exactly like doing a deal with Wal-Mart – yet,” he said.
Wolseley was the top riser on the blue-chip index, ticking up 0.8% after the plumbing supplies firm rating was upgraded to “overweight” by JP Morgan.
The US bank said it expected Wolseley’s earnings from its US business to increase.
Mining stocks were among the top losers with Antofagasta down 3.6% and Anglo American down 2.2%.
The pound was down 0.2% against the dollar at $1.28690 and 0.04% lower against the euro at 1.142 euros.