Leading UK stocks surged on Wednesday afternoon after failing to find any real momentum earlier as Wall Street hit new highs, offsetting a disappointing earnings release from Tesco.

The benchmark FTSE 100 closed 0.7% higher at 6,939.58.

Supermarket group Tesco fell 2% to 227.4 as it reported a 20% drop in annual profit after rising grocery sales were offset by lower fuel sales, costs associated with adapting to the pandemic and a writedown at its banking operation.

Tesco held its annual dividend steady at 9.15p per share, while forecasting a 'strong improvement in profitability' in the current financial year.

EasyJet jumped 6% to 978p, having forecast a slightly narrower loss than expected amid efforts to cut costs by limiting flying capacity, which it expected to increase from late May onwards.

EasyJet's headline pre-tax loss for the three months through March was expected in the range of £690 million-to-£730 million, with revenue down 90% to £235 million.

Defence equipment supplier QinetiQ jumped 9% to 349.6p on upgrading its annual guidance, citing stronger orders and margins in the fourth quarter.

QinetiQ said it now expected to post an underlying operating profit for the year through March of at least £147 million.

Pharmaceutical company AstraZeneca added 1.5% to £72.74 after its lung cancer drug was approved in China, a late-stage study showing it had cut the risk of disease recurrence or death by 80%.

Recruitment company Robert Walters climbed 6% to 674p on announcing that its first-quarter gross profit had fallen 12%, but was nevertheless ahead of expectations, while upgrading its guidance for the full year.

Real estate company British Land edged 0.4% ahead to 511.6p after it collected 82% of total rent for fiscal 2021.

Rival property group Great Portland Estates shed 0.3% to 694.5p as it collected 84% of rent for the year, with collections in the final quarter ahead of all four previous quarters.

Build-to-rent and student accommodation developer Watkin Jones reversed earlier gains to drift 0.7% lower at 227.5p after it guided for a first-half operating profit slightly down year-on-year, but in line with its expectations.

Industrial chain maker Renold rallied 7.5% to 23.44p on announcing that its annual revenue had fallen 13%, though trading had improved in the latter part of the year.

Renold's fourth-quarter order intake rose 10% year-on-year, though revenue fell 8.3%, held back by constraints on global supply chains emerging from the pandemic.

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