Supermarket share prices: a safe spread?
Supremarkets leading FTSE 100
by Abi Moses on 10th January, 2017 and updated 10th January, 2017 3:11pm
Following positive data regarding sales over Christmas, it appear that the supermarkets are lording the FTSE 100, partly responsible for the winning-streak the FTSE 100 finds itself in at present. In a update released today, we saw that Morrisons' share price increased by 3.64%, with the firm reporting close to a 3% jump in like-for-like sale leading us to the New Year. As the most attratcive sales report in a whopping seven years, Morrisons believe rivals will find it hard to reach the high bar they have set.
This comes as Kantar Worldpanel claimed that consumers spent nearly half a billion more on Christmas food that they did in 2015, lifting the over sales in the space by 1.8% in the three months up to January.
David Beadle of Moody's was quoted to have said the following on the subject:
'Importantly, [Morrisons'] strong top-line performance is being achieved alongside ongoing cost savings. As such, the company are guiding for full year profits to be slightly ahead of previous market expectations.'
Tesco were equally as thrilled by the festive season, enjoying a 1.3% sales rise which was ecognised by an increase in Tesco share price, hiked up to 4.4% today. Believing their profits to be ahead of what the consensus suggests, could we see further hikes in the share prices of such houehold brands?
Sainsbury's share price also benefited from Kantar's update, rising 1.71 per cent. However, Connor Campbell, financial analyst at Spreadex, said any enthusiasm for Sainsbury's was "tempered" because the supermarket is expected to reveal a drop in sales in its third-quarter trading update tomorrow.
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