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UK stocks opened almost 1% higher on Tuesday as concerns about the Omicron coronavirus variant cooled, China eased monetary policy and several local companies announced earnings upgrades.
At 0824, the benchmark FTSE 100 index was up 66.06 points, or 0.9%, at 7,298.34.
Industrial equipment rental company Ashtead firmed 2.6% to £63.5612 after it reported a higher first-half profit, hiked its dividend and raised its full-year outlook.
Ashtead's first-half profit rose 38% to $474 million year-on-year as revenue increased 18% to $3.88 billion. It declared an interim dividend of 12.5c per share, up 28% year-on-year.
Plumbing play Ferguson rallied 4.8% to £12.12, having raised its full-year expectations after reporting a rise in first-quarter sales.
Ferguson's net sales for the three months through September rose 27% to $6.80 billion year-on-year and gross margins expanded 1.7% to 31.3%.
British American Tobacco added 1.2% to £26.565 on announcing that it was 'confident' of delivering its full-year guidance.
The tobacco giant said its annual revenue grew 5% at constant currency, benefitting from strong new-category growth.
Pharmaceutical giant AstraZeneca reversed 1.3% to £82.54 following news that it had signed a development agreement with Ionis Pharmaceuticals for a drug to treat transthyretin amyloidosis.
AstraZeneca would pay Ionis $200 million upfront and additional payments of up to $485 million following regulatory approvals, plus sales-related milestone payments and royalties.
GlaxoSmithKline inched up 0.1% to £15.562 on announcing trials indicated a Covid-19 therapy it's developing with Vir Biotechnology still works against the Omicron coronavirus variant.
Fund manger Liontrust added 1.8% to £23.10 following news that it had agreed to acquire Majedie Asset Management for up to £120 million.
UK-based Majedie was involved institutional funds management, which Lionstrust said was an area of increasing strategic focus for the company.
Defence contractor Babcock International rose 3.4% to 317.1p, having swung to a first-half profit underpinned by rising revenue and leaner spending as a turnaround strategy takes hold.
Babcock's pre-tax profit for the six months through September was £58.8 million, compared with a loss of £811.6 million year-on-year, while revenue rose 8% to £2.22 billion.
Recruitment company PageGroup climbed 3.8% to 678p, having upgraded its annual earnings guidance, as improved market conditions persisted into the fourth quarter.
PageGroup's operating profit for the year through December was now expected to be in the region of £165 million.
Specialist lender Paragon Banking gained 4.0% to 560.67p after it booked an 81% jump in full-year profit, as lending and deposit volumes rose, margins expanded and credit quality improved.
Paragon Banking declared a full-year dividend of 26.1p per share, up from 14.4p year-on-year.
Concrete-levelling technology group Somero Enterprises firmed 5.9% to 501.78p, having upgraded its annual earnings, revenue and cash guidance amid continued strong trading in North America.
Somero's adjusted earnings before interest, tax, depreciation and amortisation for the year through December were now expected to be about $45 million, with revenue of about $130 million and cash of $39 million.
London West End property investor Shaftesbury added 0.6% to 617.5p on announcing that it had signed over 60 retail, hospitality and leisure brands in Carnaby, Seven Dials, Chinatown, Soho and Fitzrovia since 1 October.
Weekend footfall, it added, was currently at or above 2019 levels, while weekdays were at about 80%.
Sports and leisure equipment retailer Tandem advanced 1.6% to 640p after it forecast a full-year profit either in line or slightly above current market expectations.
The company said revenue in the two months through November had flattened, principally as a result of the comparative period in 2020 being particularly strong.