A disappointing trading update from Tesco was enough to ensure that the supermarket’s share price shed 4.3 per cent today, settling at 405.5 pence.
The group reported a 7.6 per cent rise in group sales but, crucially, noted that sales at UK stores (open one year or more) grew just 0.6 per cent on a like-for-like basis.

In his statement to the market, Terry Leahy, chief executive of Tesco group, said the company’s performance was hindered in the run up to Christmas by the disruptive effects of the severe winter weather conditions.

He said, ‘Our staff and suppliers did a fantastic job in delivering a great shopping trip for customers in difficult circumstances.’

The second worst performer was British American Tobacco, which dropped 3.6 per cent at 2,325 pence as broker sentiment sprinkled gloom around the tobacco sector while Luxury goods group Burberry was down 3.4 per cent at 1,080 pence.

Meanwhile, there were some strong performers at the other end of the table with the recently promoted FTSE 100 constituent IMI Group up 4.2 per cent to 949 pence after Bank of America / Merrill Lynch upgraded its rating to ‘buy’.

Financials continued to recover ground with Resolution Group rising 3.7 per cent to 252 pence while Royal Bank of Scotland Group also gaining 3.5 per cent to 42.63 pence.