Tesco and Marks & Spencer top & tail flat FTSE

Analysts were naming Tesco as the Christmas victor, with Oriel Securities raising their view on the shares from 'hold' to 'buy'.

‘The crucial like-for-like number is flattered somewhat by Tesco’s dire performance over Christmas 2011, but it does confirm both a return to form – and a decisive victory over rivals Sainsbury’s and Morrisons,’ said John Ibbotson, director of the retail consultants Retail Vision.

Kate Calvert of Seymour Pierce was less convinced. ’There is still much to be done given general merchandise remains a drag and we believe there will be no visibility on whether UK profits have bottomed until the second half of 2013’, she said, reiterating her ‘reduce’ rating on the shares.

Bunzl buying spree

Tesco was competing for top place on the FTSE 100 with Bunzl (BNZL.L) after the outsourcing group announced that it had completed three further acquisitions in South America and the US. Shares rose by 3.4% to 1,050p. ‘Bunzl’s balance sheet remains strong, we reiterate our BUY stance,’ commented Robin Speakman of Shore Capital.