Morrisons Soars 11%, More To Come?
Fiona Cincotta March 18, 2020 2:27 PM
Morrisons jumps thanks to business rates holiday, consumers stockpiling and the recession proof nature of supermarkets
The FTSE may be down over 4% but Morrisons has soared 11% across the morning session, thanks to business rates holiday, consumers stockpiling and the recession proof nature of supermarkets.Morrison’s was the first of the big four supermarkets to release full year results:
- Like for like sales excluding fuel -0.8%
- Full year revenue -1.1% £17.5 billion
- Underlying pre-tax profit +3% to£408 million
Morrisons have announced it is creating 3500 jobs to cope with the increased demand, almost all of which is online.
The risk will be if supply chains start to experience large disruptions and stock doesn’t arrive to the shops. Whilst we are still a long way from this position it is worth keeping in mind given the rapidly changing nature of the coronavirus impact.
Levels to watch
Morrisons has surged back above its 50,100 and 200 sma on a bullish(4 hr) chart. At 200p it is trading around where it was at the start of the year, recouping all losses year to date.
Immediate resistance csn be seen at 203p, (today’s high) perior to 210p (Sept’19 high).
Support exists at 186p (200 sma) prior to 180.4p (today’s low) and 179p (100 sma)