Sainsbury’s, Imagination and Johnson Service Group

The FTSE100 opened in negative territory following falls in Asia overnight. Traders will be looking to the UK construction purchasing-managers' index out mid-morning,” says AJ Bell Investment Director Russ Mould.

Supermarket giant Sainsbury’s was one of the biggest blue-chip risers following strong first quarter figures. The group’s retail sales were up by 2.7% with grocery sales up 3%. Online grocery sales grew by 8% and its general merchandise and clothing business, which includes Argos, outperformed the market. Argos customers are increasingly choosing to shop online which is consistent with the group’s objective of being a leading digital retailer. The market, though, remains competitive and Sainsbury’s will continue to manage cost price pressures closely. The group’s shares were up by more than 1.4% in early trading.

Imagination Technologies Group’s shares jumped after full-year adjusted operating rose to £29,2m from £10.5m last time. The group, which put itself up for sale last month, is currently embroiled in a row with its largest customer, Apple. Imagination’s management team transformed the business in the past year but the dispute with Apple has forced the group to change course. Imagination’s shares tumbled when Apple announced that it no longer planned to use the company’s chip technology, but there have been a number of would be suitors since the ‘for sale’ notice went up. Imagination’s shares were up by over 9.8%.

Johnson Service Group was an early riser after it expected full year results to be slightly ahead of management forecasts. JSG is very well placed for the seasonally busy summer months following the successful completion of two major investment programmes at the Southall and Chester factories. The group remains remained focused on driving the operational and synergy cost benefits of last year's acquisitions but it also considering further opportunities to develop the business. JSG’s shares were up by more than 2.5%.

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