Market Report: Tesco tumbled to 356.16p while Morrisons was weaker at 266.2p
Friday 15 November 2013
Punters were warned cheap supermarkets will remain a threat to the UK's established grocers so Tesco and Morrisons stock were off the shopping list yesterday.
Analysts at Goldman Sachs predicted discounter and online competition will "capture 22 per cent of the UK grocery market by 2017" and "industry margins are likely to contract".
So they recommended ditching Tesco, Morrisons and Sainsbury's and investors obeyed as Tesco tumbled 8.55p to 356.15p, while Morrisons was 7.8p weaker at 266.2p. Sainsbury's was somewhat insulated after a storming half-year sales update earlier this week and added another 3.9p to 414.6p.
Updates from retailers demonstrated it was those with overseas stores that were prospering. Luxury giant Burberry added 27p to 1,489p after posting first-half profits above £1bn.
Over on the mid-tier table fashion brand Ted Baker's successful international growth helped it record a 24 per cent jump in sales to £77.1m and it strutted up 97p to 1,887p. Meanwhile, books to stationery shop WH Smith reported comparable sales down 4 per cent but it managed to tick up 3p to 983p.
The wider market was in a buoyant mood and added 36.13 points to 6,666.13 as dovish comments out of the US calmed traders.
Bottom of the blue-chip index was British Gas-owner Centrica which warned profits will be lower than expected and it lost 18.6p to 345.3p.
Outsourcer Serco said its contract issues and investigations into overbilling will hit profits for the next two years and it collapsed 84.9p to 419.1p – bottom of the FTSE 250 league table.
Ophir Energy – top of the mid-tier table index – sold half its interest in a project offshore of Tanzania to a subsidiary of Singapore's Temesek for £1.25bn and jetted 33p to 362.1p. Sausage-skin maker Devro warned on full-year profits and tumbled 3.3p to 316.7p.
Volex, the electrical cable maker, lost 25.75p to 91p when it reported a $4.1m (£2.5m) pre-tax loss in the first half.
Daily Mirror-owner Trinity Mirror said it expects to report full-year earnings at the high end of market expectations and produced a 28p gain to 166p.
Justin Bieber was one of the hardest hit
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...