MARKET REPORT: Sainsbury’s shares set for best year since 1992

Shares in Sainsbury's closed at its highest level in two years, just days after industry data showed the sector has won back shoppers amid a price battle with cheaper rivals.

The FTSE 100 supermarket group rose 1.6 per cent, or 4.7p, to 294.8p – a level not seen since November 2021, when they hit 295p – bringing this year's gain to more than a quarter. comes out third.

Earlier this week, figures from market research group Kantar showed Sainsbury's accounting for 15.6 percent of grocery spending, up from 15.2 percent a year ago.

This was the biggest gain since 2013 and came amid booming demand for the Taste The Difference range, where sales increased by 23 percent.

It is Britain's second largest supermarket after Tesco (down 0.2 percent, or 0.6 pence, to 287.9 ​​pence), which makes up 27.5 percent of the food market. Sainsbury's is ahead of discount retailers Aldi and Lidl and of private equity-owned Morrisons and Asda.

The outlook for the sector is positive as food inflation eases in Britain, according to Goldman Sachs. The US investment bank said Sainsbury's is the only one of the so-called Big Four supermarkets currently growing volumes.

Goldman Sachs upgraded Sainsbury's from 'neutral' to 'buy' and raised its price target from 305p to 350p.

It means the supermarket is on track for its best annual performance since 1992.

London's stock market ended the week on a negative note as the FTSE 100 rose 0.5 percent, or 40.75 points, to 7554.47, and the FTSE 250 rose 0.5 percent, or 83.25 points, to 18701.99.

Oil prices rose a day after Saudi Arabia and Russia urged all members of the intergovernmental oil-producing group Opec and its allies to agree to further production cuts.

Brent crude rose nearly 2 percent to $75 a barrel, up from nearly $97 just over two months ago.

But Tamas Varga, an analyst at oil broker PVM, said “there is an abundance of oil available.”

He cited the lack of consensus among the members of OPEC+ (which includes other oil-producing countries that are not part of OPEC), record high US production and declining Chinese crude import figures.

Back in London, Anglo American had its worst day on the stock market since October 2008, after the mining giant revealed it will cut its metal production in South Africa and Chile.

It wants to reduce costs amid continued economic volatility and lower metal and diamond prices.

The shares flopped 19 percent, or 421.9p, to 1802.6p.

Chilean miner Antofagasta moved decisively in the other direction, rising 4.2 percent, or 61.5 cents, to 1,514 cents on stronger copper prices.

City trading house IG Group has appointed Breon Corcoran, the former boss of gambling giant Flutter (up 2 percent, or 255p, to 13155p), as chief executive.

He will start at the end of January and replace June Felix, who resigned in August due to health problems. Shares rose 3.8 percent, or 27p, to 733.5p.

According to Deutsche Bank Research, ongoing geopolitical conflicts should ensure that European defense spending remains high next year. It raised its rating on Rolls-Royce (up 1.1 percent, or 3.1 cents, to 289.3 cents) and BAE Systems (up 2.3 percent, or 23.5 cents, to 1042, 5 cents).

Pressure increased on online retailer THG after a second shareholder called on it to close down its activities. Dutch asset management firm OVMK, which owns 2 percent of the London-listed company, has joined Kelso Group in demanding that the beauty, nutrition and trading platforms be spun off into separate companies.

Shares in THG rose 6.6 percent, or 5.16p, to 83.26p, taking gains for the year to almost 90 percent.