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 and spread bets.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Trade on the general election result
- Go long or short with CFDs or spread bets
- 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
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
