City gambles on 2003 winners and losers
Generally strong forecast for UK retailers
January 1 2004
The last day of trading in 2003 on the UK stock market saw dealers speculate on the winners and losers among UK retailers over the key Christmas trading period.
A belief that retailers have generally had a good Christmas, with consumers delivering a last minute spending rush, as well as a busy start to the post-holiday sales, helped the FTSE 100 share index finish 2003 on a positive note.
With Asda having reported strong sales for the week before Christmas, rivals Tesco and Sainsbury’s both saw demand for their shares on an assumption that the supermarket sector generally has enjoyed good sales.
Value clothing retailer Matalan saw its share price end 2003 on a upward trend. Despite having warned at the start of December that trading had been disappointing, the City generally believes that business has been better over the past few weeks as promotional activity and the start of the sale. Matalan also continues to be at the centre of takeover rumours.
Marks and Spencer, which has been the subject of much speculation about the strength of its clothing sales, has also edged ahead over the final days of trading. Rival Next saw its share price fall back on the final day after a strong rise earlier in the week.
Dixons, GUS and HMV all finished 2003 on positive notes. However, WHSmith, rumoured to have had a disappointing Christmas, saw its shares fall by 12p on the final day of 2003 as the City speculated on the possibility of an imminent profit warning.
