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Sainsbury’s (Q1 trading statement 4 July)
Recent Kantar data has pointed to a small loss of market share for the past three months, but proposed merger partner Asda at least saw an increase, so the news is not entirely bad. While the possible merger will lurk in the background as the latest figures are discussed, Sainsbury's still needs to show that it remains competitive and is continuing to successfully integrate Argos into its stores. At 15 times earnings, Sainsbury’s trades well above its five year average of 11.7, and given the recent run-up in the share price it may well be subject to some profit-taking following these numbers.
Sainsbury’s has seen its shares gain almost 50% from the late March low, fired up by news of the potential deal with Asda. The 2014 high at 327p is now in sight, while a drop back would likely find support at 294p and then 283p.