FTSE still on the rise
Shares in Sainsbury’s retreated 3% today after evidence of more strong sales growth failed to excite the City.
The retailer reported like-for-like sales growth of 5.4% in the second quarter, slightly lower than market forecasts and down on the inflation-driven rise of 7.8% seen in the first quarter.
Sainsbury’s shares slipped 9.4p to 313.5p by mid-morning, even though the wider FTSE 100 Index consolidated hefty gains seen in the previous session to rise 5.8 points to 5143.7.
The top flight added more than 100 points yesterday and the Dow Jones Industrial Average closed 1% higher as investors put recent recovery doubts firmly to one side.
The rest of the supermarket sector was also under pressure following the figures from Sainsbury’s, with Morrisons down 3p at 272.1p and Tesco off 4.4p at 386.3p, despite delivering a solid half-year trading update yesterday.
The risers board was led by InterContinental Hotels after Citi raised its rating on the Holiday Inn chain to buy and said the stock looked cheap compared with US peers. Shares were up by almost 4% or 29p to 828p.
B&Q owner Kingfisher also benefited from a broker upgrade as shares lifted 6.9p to 222.9p, a gain of 3%, while Burberry cheered 9.5p to 510.5p on Nomura’s comments about steadier trends in the luxury goods sector.
One of the biggest gains in the FTSE 250 Index came from recruitment firm Michael Page International after it signalled further stabilisation in its markets, including in the UK after a 3% drop in quarter-on-quarter profits.
Shares were 6% or 19.6p higher at 349.8p.
Thorntons shares were also stronger, up 4% or 5.25p to 123.25p, after the chocolate retailer achieved first quarter sales growth of 2.3% and said it was well placed for the Christmas trading period.
