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Supermarkets top FTSE as Goldman turns bullish

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Supermarkets top FTSE as Goldman turns bullish

Supermarkets have jumped to the top of the FTSE 100 after Goldman Sachs analysts turned bullish on the sector, arguing margin pressure was showing sings of easing.

Tesco (TSCO) topped the FTSE 100, up 3.8% at 202.6p after Goldman Sachs switched its rating on the stock to 'buy' from 'sell'.

The analysts argued the supermarket would continue to take market share in 2018, while reinvesting less of its cost savings in the business.

'This should drive greater margin expansion than we forecast before,' they said, according to Reuters.

Morrisons (MRW) meanwhile rose 2.7% to 219.7p as the analysts upped their rating to 'neutral', while Sainsbury's (SBRY) was up 2.9% at 239.8p after a target price increase.

The FTSE 100 was trading just a single point higher at 7,340, despite the boost from a weak pound, down 0.4% against the dollar at $1.342, as prime minister Theresa May yesterday failed to clinch a deal over the treatment of Northern Ireland under Brexit.

On the FTSE 250, Provident Financial (PFG) was the heaviest faller, down 10.6% at 787p after announcing the Financial Conduct Authority was investigating its Moneybarn car and van financing division.

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