LONDON, October 8, 2011 /PRNewswire/ --
Quarterly reports and trading announcements can send a company's price flying upward or downward with some velocity. For example, the 5th October saw Tesco and Sainsbury's report trading updates to shareholders. While Sainsbury's largely met expectations, Tesco shares delivered a weaker-than-expected report of profits - and the markets reacted accordingly.
Joshua Raymond, Chief Market Strategist at spread betting provider City Index (http://www.cityindex.co.uk/), states: "Tesco reported a rise in half year profits of 3.7%, with operating profits of £1.77 billion, which fell some way short of market expectations of £1.83 billion with overseas markets unable to fully balance weak UK consumer activity. By comparison, Sainsbury's reported a slightly better than expected rise in sales of 1.9% in what has been interpreted as a fairly resilient performance, despite the consumer headwinds facing UK retailers at the moment."
"Sainsbury's shares rallying 4% that morning to trade near the top of the FTSE 100 - and Tesco shares losing ground on a day most UK stocks rose - shows how shareholders reacted to the update."
City Index provides a weekly calendar of forthcoming economic announcements and company reporting dates, keeping traders in the loop with events that might otherwise catch them off-guard. The effect these announcements can have is clear, so it is crucial traders prepare for them.
View the current economic calendar at:
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SOURCE City Index