Market Report: McCarthy and Stone shares have soared since its £1bn listing in November

The group, which is taking advantage of Britain’s ageing population, said it was on track to build 3,000 homes a year

McCarthy & Stone, the retirement home builder, has seen its shares soar (Getty)

Investors in McCarthy & Stone must be asking themselves, “What market turmoil?” as the shares have soared since its £1bn listing in November.

While others have been watching their valuations crumble or abandoning plans for floats, the retirement home builder has risen more than 50 per cent in less than three months. It paused for breath yesterday, down 2.5p at 275p, after its first trading update since its return to public ownership.

The group, which is taking advantage of Britain’s ageing population, said it was on track to build 3,000 homes a year and meet its annual financial targets.

The broker Jefferies described it as a “Ronseal” trading update, implying that it did exactly what it said on the tin when it floated, while Peel Hunt, its new house broker, suggested investors could bank profits in coming weeks.

The FTSE 100 began the week on the back foot, off 23.69 to 6,060.1 as China’s poor run of manufacturing data continued.

Optimism that a deal can be agreed by Home Retail Group and its suitor Sainsbury’s before today’s 5pm deadline propelled the Argos owner up 16.2p to 152.9p, with reports suggesting the supermarket group will have to pay more than 160p a share or £1.3bn. The hedge fund Immersion Capital covered its entire short position last week in anticipation of an agreement.

With Just Eat still smarting from Morgan Stanley’s downgrade to underweight, UBS took a bite, beginning its coverage of the online takeaway delivery firm with a sell. The shares fell 14.1p to 359.3p.

The broker warned that “public perception is not strong enough to withstand competitive threats”, naming Deliveroo as one.

Premier Oil rocketed 17p to 36p as it resumed trading following its $135m takeover of E.on’s North Sea assets.

On AIM, Keywords Studios, which tests video games such as Guitar Hero, hit the right note with investors, rising 16p to 220p with annual profits “comfortably” ahead of analyst expectations.

More share buying by directors lifted the music streaming group 7digital, which surged 1.88p to 15.13p, having leapt almost 150 per cent in a fortnight.