London mid-cap stocks hovered near a five-year high on Tuesday, driven by strong interim earnings from bakery chain Greggs.
The FTSE 250 index recently surpassed the 24,000 mark, rising 14 percent from its late-March low.
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Greggs shares surged 255p to 1,945p, their highest valuation since June 2025.
The company reported a 19.7 percent increase in pre-tax profits to £76 million, with total revenues up 7.2 percent to £1.1 billion.
Company-managed shop like-for-like sales grew by 2.1 percent.
The strong performance caught short sellers off guard.
According to S&P Global Market Intelligence, about 15.5 percent of Greggs shares were out on loan before the announcement, making it the fourth most-shorted stock in the UK.
Expansion Plans and Market Reaction
Chief executive Roisin Currie outlined long-term development targets.
"We are making great progress in building the supply chain infrastructure that will support the significant growth opportunities that lie ahead," she said.
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Greggs maintains a target of 3,500 nationwide locations, expanding from its current 2,773 sites.
Other mid-caps also moved. Energy firms Ithaca Energy and Harbour Energy advanced as Brent crude approached $90 per barrel.
Paragon Banking Group climbed 38p to 861p after confirming quarterly trading aligned with targets.
Shore Capital issued a price target of 1,080p for Paragon, noting undervaluation relative to Lloyds and NatWest.
Conversely, Breedon Group fell 9.5p to 316.1p after forecasting a fifth consecutive year of declining UK demand.
The domestic downturn was partially offset by growth in Ireland and the US, keeping underlying interim earnings up 1 percent to £115.5 million on revenues of £858 million.
"We are building an increasingly diversified business in the structurally attractive Irish and US markets," said CEO Rob Wood.
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Breedon approved a 5 percent dividend increase to 5p per share, payable November 6. Peel Hunt retained a 415p price target on Breedon.
