FTSE slips in mid-morning training
Investors holding bullish positions on Tesco pulled in their horns today despite record results from the UK’s leading supermarket.
Shareholders bailed out of Tesco, which made record profits billion last year, after it cautioned that it did not expect future growth to match recent strong levels.
The news put the group in the FTSE 100 Index fallers, down 1.5p to 317.25p, and helped to reduce the top flight by 13.2 points to 4960 by mid-morning.
Sentiment towards the firm cooled after it flagged rising costs and predicted a “more normal” year of trading ahead.
However, there was good news for investors in ailing high street giant Marks & Spencer after it predicted 2005 profits at the high end of expectations despite falling fourth quarter sales.
M&S stayed firmly at the top of the Footsie following the update, lifting more than 2%, or 9.75p, to 350.75p.
Elsewhere, Tullow Oil was at the top of the FTSE 250 fallers as it reported that profits had trebled, but forecast a year of consolidation. Shares were 3%, or 6p, off at 184p.
