Why does Asda terrify stock market investors? | Nils Pratley

Why does Asda terrify stock market investors? | Nils Pratley

Supermarkets, Tesco, Asda, J Sainsbury, Marks & Spencer, Retail industry, Business, UK news Business | The Guardian

​Markets could be overreacting to supermarket price war fears as Tesco, Sainsbury’s and M&S shares slide It normally takes something big to knock 13% off Tesco’s share price – a profits warning, say, or a 2014-vintage accounting scandal. This is the UK’s largest supermarket chain by a distance, after all, and a business that runs on rails now that it has sold most of its foreign adventures to concentrate on the day job.Yet 13% is the fall in Tesco’s shares since last Friday when Asda said, in effect, it has had enough of being the industry’s punchbag and will try to regain lost market share by cutting prices. Sainsbury’s shares are also off 8% in the same short period, and even Marks & Spencer’s, down 6%, have been caught by investors’ worries about a price war. Continue reading… 

Markets could be overreacting to supermarket price war fears as Tesco, Sainsbury’s and M&S shares slide

It normally takes something big to knock 13% off Tesco’s share price – a profits warning, say, or a 2014-vintage accounting scandal. This is the UK’s largest supermarket chain by a distance, after all, and a business that runs on rails now that it has sold most of its foreign adventures to concentrate on the day job.

Yet 13% is the fall in Tesco’s shares since last Friday when Asda said, in effect, it has had enough of being the industry’s punchbag and will try to regain lost market share by cutting prices. Sainsbury’s shares are also off 8% in the same short period, and even Marks & Spencer’s, down 6%, have been caught by investors’ worries about a price war.

Continue reading… 

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