FTSE 100 rises but Tesco loses early gains

Market trader (file picture)Image copyright
Getty Images

UK shares were higher in morning trade but an early rally in Tesco shares quickly fizzled out.

Shares in Tesco had jumped 2% initially after the supermarket giant’s first-quarter sales growth beat expectations, but then gave up all the gains to stand 0.6% lower.

The retailer said like-for-like sales rose by 2.3% in the three months to 27 May, boosted by demand for fresh food.

The FTSE 100 share index was up 19.54 points at 7,438.90.

Shares in Rolls-Royce rose 0.9% after the engineering group said it had made a good start to 2017, with “all businesses performing in line with expectations”.

The company also revealed that the weakness of the pound was set to lift revenues by £400m and profits by £50m. The drop in the value of the pound since the Brexit vote means that Rolls-Royce’s dollar earnings are worth more when converted back into sterling.

On the currency markets, the pound edged up 0.1% against the dollar to $1.2773, but slipped 0.1% against the euro to 1.1432 euros.


Get the Facebook Likebox Slider Pro for WordPress