Tesco, Getech and Eagle Eye

“Blue-chips plunged with banking and financial stocks prominent fallers as investors grow increasingly nervous about a possible Brexit and a potential hit to the UK economy,” says AJ Bell Investment Director Russ Mould.

“Supermarket giant Tesco’s shares fell after it confirmed the sale of its 95.5% controlling stake in the Kipa business in Turkey to Migros, and its intention to sell the Giraffe restaurant chain to Boparan Restaurants. The sales are part of chief executive Dave Lewis’s plans to streamline the group’s sprawling business portfolio which is in stark contrast to the expansionist policies of his predecessors Sir Terry Leahy and Philip Clarke who were passionate about diversifying Tesco’s reach. Tesco was down by more than 3.5%.

“Geoscience services group Getech has become another victim of the depressed energy sector with fourth quarter orders being deferred or cancelled. The group, which was in the red at the halfway stage, had an exceptional start to the second half but is currently trading below forecasts. A full-year pre-tax profits is still expected but the market remains very depressed and a sustained increase in oil prices is needed to see demand for its products convert from a wish to buy to actual purchases. Getech’s shares fell by more than 8% before rallying to be down by around 1% at lunchtime trading.

“Software firm Eagle Eye Solutions’ shares slumped it warned revenue growth would be below targets at around 34%. Growth has accelerated in the second half but will still miss management’s previous expectations due to delays with significant contracts. Its shares were down by over 14%.”

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