Sainsbury’s big climber on FTSE 100

<p>Latest financial figures for Sainsbury’s above market expectations and help to encourage investors.</p>

Sainsbury's has helped the FTSE 100 recover from three-month lows in early trading.

While it's latest quarterly trading statement for the 12 weeks to June 6th reported a sixth straight quarter of declining underlying sales – like-for-like retail sales for the first quarter were down 2.1 per cent (excluding fuel) – the figures were better than market expectations. 

As a result, the retailer is the highest climber on the index, up 4.6 per cent to 260 points as of 11:00 BST. Rivals Tesco and MRW Morrison have also benefitted from the positive sentiment in the marketplace – indeed, four of the top five risers are from the food sector. 

Mike Coupe, chief executive of Sainsbury's, pointed to the "strong levels of food deflation and a highly competitive pricing backdrop" as reasons for the slightly disappointing trading figures. 

"These pressures, including the effect of our own targeted price investment, have led to a fall in like-for-like sales for the quarter," he added. However, Mr Coupe said the company is buoyed by the early signs of progress being made as a result of the changes introduced through November's Strategic Review.

With customers benefitting from a push towards improving value and boosting investments in quality, the supermarket giant is confident there is a positive future ahead. 

The FTSE 100 is up around three per cent since the start of 2015, with Standard Chartered also climbing well in this morning's trading (June 10th). Part of the reason for this is speculation that George Osborne might announce a change to the bank levy on the British banking industry in his Mansion House speech tonight.

Such a move would benefit this bank as the majority of its business is conducted outside of Britain.

However, the ongoing debt repayment issues in Greece and the possibility of the country exiting the euro is dampening the spirits of some investors. 

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.