Jump to content

Sainsbury’s bucks the trend as shares rise 3% despite FTSE 100 drop


MongiIG

Recommended Posts

First half (H1) earnings at Sainsbury’s show that it is possible to cut costs and still deliver an upside surprise for investors. The supermarket’s numbers show that it is gaining market share from rivals.

 Jeremy Naylor | Writer, London | Publication date: Thursday 03 November 2022

Sainsbury's shares up

Share of supermarket chain Sainsbury's are on the rise today, bucking the overall market trend.

The company reported first half (H1) earnings. Boss Simon Roberts says he has great sympathy with his customers as we all have to contend with higher interest rates and so higher prices, and big strains on household budgets.

So let's take a look at the numbers. The company saw profits slump 8% in the latest six months as the cost of living pressures offset slightly improved revenues.

But if you look at the like-for-like sales, excluding fuel, down 0.8%, the company says it will invest more than £500 million by March 2023 and is keeping prices lower by cutting costs at a faster rate than its competitors, meaning that they have more firepower to battle inflation.

But of course they are up against some really big firepower as well, with the likes of Lidl and Aldi and all the other major supermarket chains, all trying to vie for the same ground.

Share price chart

Let's take a look at what Sainsbury's share price has done because it really has been an impressive lift in its shares.

The stock, after an hour and a quarter worth of trade this morning, is up 2.8% off the highs. But just trading at this wavy blue line here, which is the 100 period moving average, but we're in levels pretty much not seen since the middle of September this year.

So it was an impressive number coming out this morning and it has been appreciated by traders who have bid the stock up.

And of course, you've got to bear in mind the fact that the FTSE 100 is down today because of the word from the Fed last night and Bank of England (BoE) is raising interest rates as well today, up by an expected 75 basis points to 3%. So that's going be another headwind for these companies.

But they are seemingly coping well in trying to engage with customers with lower prices, but they're cutting costs at the same time. And it's this that I think ultimately could well end up showing through in full year profit numbers.

We'll have to see how things go, but at the moment at least Sainsbury's stock is up by around about 3%.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • While after all the previous halvings, Bitcoin's price skyrocketed, this halving will be different. This is because now the Bitcoin ETF is in play, which will attract long-term investors, resulting in a decrease in volatility. Bitcoin will most likely still experience a hike and reach new heights, but the returns will not match the previous levels.
    • KO Elliott Wave Analysis Trading Lounge Daily Chart, The Coca-Cola Company, (KO) Daily Chart KO Elliott Wave Technical Analysis   FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Flat POSITION: Minute wave {c} of 2.   DIRECTION: Bottom in wave {c}. DETAILS: With yesterday’s session we’ve had a spike in volume on the bull side, which could make us start thinking the correction is either completed, or soon to be. We have almost reached 1.618 {c} vs. {a}., but more importantly we have reached the base of the leading diagonal in wave 1, where many times support is found.         KO Elliott Wave Analysis Trading Lounge 4Hr Chart, The Coca-Cola Company, (KO) 4Hr Chart KO Elliott Wave Technical Analysis   FUNCTION: Counter Trend MODE: Corrective STRUCTURE: Flat POSITION: Wave (v) of {c}. DIRECTION: Bottom in wave (v). DETAILS: Here on the intraday chart it’s easier to see the five wave move in wave {c} which seems to have unfolded nicely. Looking for a clear sign of a bottom in place.        As of April 18, 2024, Elliott Wave analysts closely monitor the daily and 4-hour charts of The Coca-Cola Company (Ticker: KO) to provide insightful technical forecasts. These Elliott Wave predictions play a crucial role in identifying potential trends and reversal points in the stock's price movement.     * KO Elliott Wave Technical Analysis – Daily Chart* The Elliott Wave analysis on the daily chart of Coca-Cola shows a corrective phase within a flat structure, identified as minute wave {c} of 2. This phase is categorized under a counter trend function, suggesting that the ongoing correction is approaching completion. The recent trading session marked a significant increase in volume on the bullish side, hinting at a nearing end to the correction. Technically, the price has approached the critical 1.618 Fibonacci extension of wave {c} relative to {a}, reaching a key support level at the base of the leading diagonal from wave 1—a typical zone for finding support.   * KO Elliott Wave Technical Analysis – 4hr Chart* On the 4-hour chart, Coca-Cola’s stock exhibits a detailed structure of the corrective phase, clearly depicting wave (v) of {c}. This finer resolution allows for a clearer visualization of the complete five-wave move within wave {c}, indicating the likelihood of a bottom formation. Analysts are keenly observing for definitive signs that confirm the bottom is firmly in place, signaling potential bullish reversals.   Technical Analyst : Alessio Barretta   Source : Tradinglounge.com get trial here!    
    • I came across an interesting new meme token called EPIK that launched on the Solana blockchain earlier this month. It features a playful little duck character and has been gaining traction since its debut. In my opinion, several factors contribute to EPIK's potential. Meme coins naturally attract attention, and EPIK's unique duck character design helps it stand out. Additionally, backing from crypto influencers has fueled market interest. It seems on-chain activity is also picking up steam, with daily TV reaching millions of dollars and the number of holders approaching 10,000. With a strong community presence in both English-speaking and Chinese-speaking communities, a recent listing on Bitget potentially exposing it to a much wider audience, coupled with the potential for further price increases, I believe EPIK is a project to keep an eye on.
×
×
  • Create New...
us