Price wars, orders and tiles

Wednesday 6 January 2016

The headline index handed back yesterday's steady gains in early trading ahead of the UK’s latest PMI services index today.
“Investors who were focusing on the Christmas trading figures from non-quoted John Lewis Partnership (LSE:BD45) have been presented with a curate’s egg,” says AJ Bell Investment Director Russ Mould.

“The overall figures are encouraging with group sales up by 4.1% in the six weeks to 2 January. But while sales in John Lewis stores increased, like-for-like sales at the group’s supermarket Waitrose fell by 1.4% amid the fierce price war with other grocers, a message which is likely to be repeated by Tesco (LSE:TSCO) and Sainsbury (LSE:SBRY).”

“Construction and engineering group Costain’s (LSE:COST) shares rose after it reported a record order book of £3.9bn at the end of December – up from £3.5bn a year ago. The group's blue-chip customers continue to invest in upgrading and renewing the UK's energy, water and transportation infrastructures and, as a result, Costain continues to be awarded large scale contracts and contract extensions requiring a range of integrated services.

“Topps Tiles (LSE:TPT) was also up in early trading after first quarter like-or-like revenues increased by 4.4% compared with a 5.2% increase a year ago.”

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