Morrisons to report tomorrow

Morrisons is bucking the trend and is up 0.8% today ahead of its results in the morning.

Morrisons is trading at 232p. The stock is performing relatively well when compared with other supermarkets and the broader retail sector, which is unusual as the retailer has underperformed over the past 15 months.

Morrisons revealed a 5.6% increase in like-for-like sales in the six-week period running up to the first week of January. As with other supermarkets, it has lost market share to deep discount shops like Aldi and Lidl.

Less than a year ago, the supermarket announced a joint venture with Ocado in a bid to claim some of the online grocery market share, which came into effect in January, as the lack of online service was holding back its share price. Ocado posted a 23% rise in sales for 12 weeks until 23 February; the partnership with Morrisons was cited as a reason for the jump in revenue. 

The share price is finding resistance at the 50-day moving average of 241p. A breakthrough could set us on the path to the 100-DMA of 255p, although, if the figures fail to impress traders, the price could head towards the recent low of 225p.

Morrisons chart

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IGA Group is intended for general circulation. 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 or 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. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.