Mixed market fortunes

Tesco and Sainsbury’s suffered mixed fortunes in the City as the FTSE 100 Index rose 44 points to 6,611.2 yesterday.

Investors showed faith in a recovery at the UK’s biggest supermarket chain, Tesco, while nerves jangled over its smaller rival’s trading update this week.

Shares in Tesco were up nearly 5%, or 8.4p to 192.9p as it notched up the strongest performance in the FTSE. By contrast, Sainsbury’s led the fallers’ board after a 3%, or 6.9p drop to 254.7p.

Tesco was higher on hopes that the worst may be over after a series of dismal sales figures and a £263million accounting black hole.

Morrisons was ahead, up 2.2p to 170.6p.

Other big risers included TUI Travel up 12.2p to 411.9p, International Airlines Group 11.3p better off at 413.9p and Persimmon ahead by 38p to £14.48.

Big fallers included Admiral down 20p to £11.95, CRH off 16p at £13.85 and Randgold Resources down 46p to £40.86.