What will the UK election mean for the Tesco share price?

Tesco has seen its share price soar on Monday after revealing it is considering selling its Asian business which could fetch as much as £7.2 billion, with a Conservative victory Thursday capable of sending its stock even higher.

Tesco saw its share price climb 5% after its revealed that it is considering offloading its Asian business, Loftus, which could fetch as much as £7.2 billion.

The supermarket chain said that it had received ‘inbound interest’ for its Asian unit, which generated a fifth of the group’s profits in 2018.

Tesco said that it is reviewing the situation but that ‘no decisions concerning the future of Tesco Thailand or Malaysia have been taken’ at this stage.

Tesco closed at 240p on Tuesday.

Looking to trade Tesco and other retail stocks? Open a live or demo account with IG.

Conservative victory could help send Tesco’s share price higher

Kantar analysis point towards a slowdown in overall sales for supermarkets in the lead up to the election, signalling a clear cooling in spending until the current political cloud is lifted.

‘This highlights the fact that Tesco is intrinsically linked with the health of the UK economy as much as anything,’ Senior Market Analyst at IG Josh Mahony said.

‘That means the UK focused supermarkets such as Tesco will be looking out for the same elements that will push the pound higher.’

By and large, if the pound moves higher, it is a reflection that companies like Tesco should outperform the wider FTSE 100 market.

‘With that in mind, a Conservative majority would drive such outperformance, while a Labour led coalition would be expected to lead to underperformance for Tesco, as investors consider the potential for higher business taxes and wages for employees,’ Mahony added.

You can go long or short Tesco with IG using derivatives like CFDs.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Trade on the general election result

  • Go long or short with CFDs
  • Speculate on key markets – including British indices, shares and GBP forex pairs
  • Manage your risk with our range of stops and limits

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.