MORRISONS was one of the biggest climbers on the FTSE-350 yesterday after its shares rose 9% on the back of positive Christmas trading figures.
Although retail analysts said the Bradford-headquartered supermarket group “remains in dire straits”, the market was more optimistic.
Morrisons’ shares rose 13p to 165.5p, having peaked at 173p in mid-morning, and closed at a two-month high – its best position since it dropped out of the FTSE 100 late last year. The retailer now has a market value of £3.86bn.
Yesterday it announced it would close another seven supermarkets, but expects that to be the end of its store closure programme, following the disposal of 140 M Local stores and the closure of a number of loss-making supermarkets in 2015.
It also revealed like-for-like sales were up 0.2% for the nine weeks to January 3, putting the brakes on falling sales, which had ranged from -2.4% to -2.9% in the previous four quarters.
Morrisons chief executive David Potts said he was “pleased with our improved trading performance over the Christmas period”.
It is forecasting full-year underlying pre-tax profits to be in the range of £295m-£310m, before the exceptional £60m costs from restructuring and store closures.
