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Wednesday's agenda: Sainsbury's outlook to be closely scrutinised

Published: 13:08 10 Jun 2014 EDT

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Another day and another glimpse into the beleaguered world of Britain's supermarkets - as Sainsbury's (LON:SBRY) posts a trading update.

It will cover group trading for the first quarter of its financial year - since March - and comes after full year results in May, which showed flat sales and modest profit growth.

"The share price retreated by 3% on the statement and has remained at similar levels since," notes broker Charles Stanley, who added that the supermarket's shares are no higher than they were five years ago.

"Market expectations are for dividend growth of 2% this year, predicated on subdued sales growth, a slightly lower profit margin and a broadly flat interest charge."

It says attention will focus on like-for-like sales performance and outlook comments.

The firm has high hopes for its convenience stores, of which it now has more than 600 (that's more than its larger stores) and it is opening two new ones each week. 

The statement will show whether the expected growth from these businesses, is actually coming through, says the broker.

Significant announcements expected:

Companies: Finals: Betfair Group (LON:BET), Greka Drilling (LON:GDL). Interims: Dolphin Capital Investors (LON:DCI). Trading statements: WH Smith, Dolphin Capital Investors, Sainsbury (LON: SBRY).

The following widely-held stocks are trading ex-dividend on Wednesday: Vodafone, Topps Tiles, Booker Group, Johnson Matthey

Economic: UK: Claimant Count Change, Unemployment Rate, Average Earnings Index, BOE Quarterly Bulletin. EU: French Final Non-Farm Payrolls, German Final CPI, Italian Trade Balance. US: IBD/TIPP Economic Optimism, 10-y Bond Auction, Beige Book, Federal Budget Balance.

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