Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Market Report: Has Tesco hit bottom? Some think so

 

Laura Chesters
Monday 20 October 2014 18:56 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Tesco is still swamped by news about its investigation into its £250m black hole but punters put it on their shopping list yesterday as some hoped the supermarket giant had hit the bottom.

The shares are down more than 20 per cent in the past month since the revelations emerged, but its delayed first-half results due on Thursday gave investors a reason to think things might start to improve. The hope is that the chairman, Sir Richard Broadbent, and new chief executive Dave Lewis will sort out the mess. The blame game at the moment points to the regime under former chief executive Phil Clarke, and it even emerged that he has been dropped as one of David Cameron’s business advisers.

Things aren’t usually that simple but Tesco shares spent most of the day at the top of the table, only to slip a little toward the end of the afternoon session, finishing up 4.75p at 1,793p.

Hospitality giant Intercontinental Hotels Group took top spot ahead of its third-quarter figures due today, up 93p at 2,249p.

Traders remained largely unconvinced of any good news for the markets despite Asian shares making a recovery. Investors in the Square Mile are still concerned about slowing growth, a re-emerging eurozone crisis and the spread of Ebola.

Friday’s rally fizzled out and the FTSE 100 tumbled 43.22 points to 6,267.07 – it is down more than 5 per cent this month after hitting a 15-month low last week.

Oil shares were out of favour again as the oil price slump lingered: oil and gas giant BG Group was bottom of the blue-chip table, down 40.5p to 1,024.5p, and oil services engineer Petrofac slipped 30p to 1,030p when a trio of analysts cut their price target for the group.

Tech stocks were on the sell list after disappointing updates from SAP and IBM. Smartphone microchip designer Arm Holdings lost 23.5p to 851.5p ahead of Apple’s results.

Small-cap explorer President Energy spurted nearly 80 per cent – up 13p to 30p – on news that it found oil in Paraguay.

On AIM, Tanzania-based Shanta Gold said its third-quarter production was up 4 per cent. It gained 0.5p to 9.38p.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in