Supermarket giant Tesco failed to win over investors with its £1billion plan to revive its UK arm today as the grocer followed world markets into the red.
The FTSE 100 Index closed 21.7 points lower at 5,745.3 as some traders took profits following strong gains yesterday, while others sat on their hands ahead of a key Spanish debt auction tomorrow.
Tesco shares lost hold of earlier gains to close 2% lower as investors digested chief executive Philip Clarke’s six-point turnaround strategy involving extra staff, new look formats and better ranges. The shares were 7.3p lower at 321.1p after starting the session some 2% ahead and were outpaced by rivals Sainsbury’s and Morrisons, following gains of 0.6p to 309.8p and 2.2p to 298.3p respectively.
Elsewhere in the top flight, a trading update helped silver miner Fresnillo top the blue-chip risers board, up 3% or 51p to £16.24. Others on the front foot included BHP Billiton, which cheered 16.5p to 1943p.
In other corporate results, Chef & Brewer owner Spirit Pub Company was 2p lower at 53.5p after announcing a 7% rise in half-year profits to £20million.
The biggest Footsie risers included Severn Trent ahead 50p at £16.56, Weir Group up 41p at £17.44 and Tullow Oil ahead 35p at £15.18.
The biggest Footsie fallers were Man Group down 7.9p at 99.6p, Resolution off 14p at 225p, Legal & General down 6p at 118.2p and BAE Systems off 14.6p at 289.2p.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Nautical Petroleum closed 4.8% higher at 347.5p and Wood Group gained 1.8% to close at 728.5p.
Among the laggards, BP fell 1.4% to 446p, Aberdeen Asset Management slipped 0.7% to 268.1p and Standard Life eased 0.6% to finish at 225.5p.
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