Tesco shares higher as FTSE 100 struggles, Crest Nicholson jumps 10%
08:26 , Graeme Evans
Tesco shares have risen 1.8p to 304.3p after the supermarket giant reiterated its full-year guidance in today’s trading update.
The performance came in another weak session for the FTSE 100 index, which is 8.14 points lower at 8155.53 after falling 0.6% yesterday.
In the FTSE 250, Crest Nicholson shares have jumped 10% or 20.6p to 233.4p amid the details of Bellway’s recent takeover approach worth the equivalent of 253p a share. Bellway shares are down 3% or 68p to 2650p.
Raspberry Pi shares have jumped 12% or 48p to 460p on their first day of unconditional dealings. They were initially priced at 280p in Tuesday’s IPO.
Crest Nicholson ‘remains confident’ in standalone prospects amid Bellway bid
07:47 , Daniel O’Boyle
Housebuilder Crest Nicholson says it “remains confident” in its standalone prospects, after larger rival Bellway revealed details of a takeover bid yesterday.
Bellway had submitted a bid last month, which was rejected. Yesterday, after Crest’s shares plunged on the back of disappointing results, Bellway revealed that it had made a bid.
The offer would give Crest shareholders 0.094 new Bellway shares for every Crest share. That would mean they would hold 17.1% of the new business and suggests a valuation of around £650 million.
But Crest Nicholson said that “significantly undervalues” the business.
It said: “As outlined in its half year results on 13 June 2024 for the period ended 30 April 2024, Crest Nicholson remains confident in its standalone prospects, in particular given conclusion of the review of provisions for completed development sites supported by external consultants, its highly attractive land portfolio and the new leadership of Martyn Clark.”
Bellway has until 11 July to decide whether to make another firm bid.
Tesco enjoys another sales bump
07:18 , Simon English
Tesco today insisted it is still the cheapest full-line grocer, fending off competition from Lidl and Aldi to record another rise in sales.
In the 13 weeks to May 25 sales rose 3.6% to £14.3 billion. In the UK alone they were up an even stronger 4.6%.
That suggests the consumer is more resilient than some analysts had feared, and that Tesco is getting its price offer right.
Chief executive Ken Murphy said: “We continue to be the cheapest full-line grocer and are the most competitive we’ve ever been, with our value, product quality and service driving better brand perception and customer satisfaction. Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets.”
Tesco’s market share is up a little to 27.6%. It claims to have been the cheapest of the major grocers for 19 consecutive quarters thanks to its Aldi Price Match, Clubcard Prices and Low Everyday Prices.
FTSE 100 steadies as S&P 500 run continues, Bank of Japan holds rates
07:15 , Graeme Evans
The S&P 500 index and Nasdaq posted fresh records last night as they continue to outperform the Dow Jones Industrial Average and European markets.
The FTSE 100 index finished 0.6% lower while the recent bout of political uncertainty caused benchmarks in Paris and Frankfurt to slump by 2%.
The Dow Jones fell 0.2% but the growth-focused S&P 500 and Nasdaq finished in positive territory, despite the Federal Reserve this week signalling just one rate cut in 2024.
European markets are set for a steadier session today, with the FTSE 100 index poised for a rise of about 33 points to 8196.
The Nikkei 225 closed 0.3% higher after the yen fell to a six week low on the back of the Bank of Japan’s decision to keep short-term interest rates near 0.1%. The bank raised rates for the first time since 2007 in March.
Recap: Yesterday’s top stories
06:48 , Simon Hunt
Good morning from the Standard City desk.
London’s main financial markets dropped further on Thursday amid weak trading for housebuilders and oil and gas firms.
Housing developers were among the main fallers after sentiment in the sector was knocked by Crest Nicholson’s profit warning.
Meanwhile, oil and gas firms with operations in the North Sea saw their shares fall back after the Labour Party confirmed it will not issue new oil and gas licences for the region if it gets into government.
The FTSE 100 finished 51.81 points, or 0.63%, lower to end the day at 8,163.67.
Across Europe, the main financial markets were again in the red as election-related uncertainty continued to put pressure on French stocks.
The Cac 40 in France ended 1.99% lower and the German Dax index was down 1.97% at the close.
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Here’s a summary of our top stories from yesterday:
