FTSE 100 movers: Tesco rallies on results; Relx lifted by upgrade
London’s FTSE 100 was down 0.6% at 7,424.86 in afternoon trade on Wednesday.
Tesco rallied as it hiked its retail profit and cash flow targets after a strong first half, with sales rising on the back of easing inflation.
Group sales excluding fuel were up 8.9% year-on-year to £30.7bn in the six months to 26 August, with inflation falling across the half and volume and sales mix trends ahead of expectations.
Russ Mould, investment director at AJ Bell, said: "Tesco is reaping the benefits of becoming a more competitive and well-run business.
"The grocery sector is cutthroat and Tesco is managing to stay ahead of the pack by being able to offer low prices on core products while also being very clever with its loyalty scheme.
"By offering big discounts to those using its Clubcard, Tesco is able to successfully compete against Aldi and Lidl while also learning more about its customers’ shopping habits, enabling it to tailor offers in the future.
"It is experiencing two tailwinds - one is from people trading down from more expensive grocers and the other is selling more posh food under its Finest brand as people look to treat themselves at home rather than eating out."
Relx was lifted by an upgrade to ‘buy’ at Goldman Sachs.
National Grid also gained after JPMorgan Cazenove said in a research note that it was among its top picks.
FTSE 100 - Risers
Tesco (TSCO)270.40p4.16%
International Consolidated Airlines Group SA (CDI) (IAG)149.00p2.90%
Sainsbury (J) (SBRY)255.10p2.70%
Rentokil Initial (RTO)601.80p2.21%
Land Securities Group (LAND)587.00p2.16%
Smurfit Kappa Group (CDI) (SKG)2,708.00p2.11%
Relx plc (REL)2,817.00p2.07%
United Utilities Group (UU.)929.00p1.75%
National Grid (NG.)946.80p1.59%
Mondi (MNDI)1,353.00p1.58%
FTSE 100 - Fallers
B&M European Value Retail S.A. (DI) (BME)547.20p-3.32%
BAE Systems (BA.)985.20p-2.94%
Whitbread (WTB)3,324.00p-2.66%
Imperial Brands (IMB)1,586.00p-2.40%
BP (BP.)505.30p-2.04%
Entain (ENT)919.80p-1.86%
Phoenix Group Holdings (PHNX)454.40p-1.79%
Frasers Group (FRAS)784.50p-1.69%
Fresnillo (FRES)527.80p-1.68%
Next (NXT)7,014.00p-1.57%