LONDON, May 18, 2026, 16:05 BST
- Tesco shares gained 2.8% in late London trading, outpacing Sainsbury’s, which rose 1.8%.
- Tesco bought 5.64 million shares to cancel as part of its £750 million buyback programme.
- The rebound in the stock comes as investors keep an eye on food-price competition, energy expenses and pressure on UK consumers.
Tesco shares climbed on Monday, beating the London market, as the UK’s biggest supermarket kept up its share buyback. Investors seemed willing to overlook how the stock ended last week.
Shares stood at 461.40p to sell and 461.50p to buy, showing a rise of 12.60p, or 2.8%, in delayed London trade. The FTSE 100 was ahead by around 1.3% on the same screen. Hargreaves Lansdown
Tesco is focusing on shareholders as it ramps up spending to protect its prices and market share. A buyback lets a company use cash to buy and cancel its own shares, cutting the number of shares outstanding and boosting per-share performance metrics.
Tesco said in a filing it bought 5,642,212 ordinary shares on May 15, paying an average of 448.31p a share. Tesco said these shares will be cancelled. Since starting the programme on April 22, Tesco has bought 16,919,519 shares, spending £77.9 million. Investegate
Tesco shares came off recent lows as the move steadied the equity story. The stock dropped about 3.4% from 464.50p on May 11 to 448.80p on Friday, recent historical price data show. ADVFN UK
FTSE 100 climbs 1.3% as consumer stocks bounce London’s FTSE 100 gained 1.3% to 10,330.33 on Monday afternoon, according to Sharecast, with consumer defensive names recovering some ground after being hit in Friday’s drop. Sharecast
Sainsbury’s moved higher too, but gains were smaller. The stock was at 308.10p on the sell side and 308.30p to buy, up 1.8% in delayed trade. Tesco had the stronger showing among listed grocers. Hargreaves Lansdown
Tough competition is still in the mix. Back in April, Reuters said Asda was stepping up price cuts to bring shoppers back, while Shore Capital’s Clive Black described Tesco as “getting the knuckle-duster out” and telling rivals it was “up for a fight.” Reuters
Tesco’s latest results help back that up. CEO Ken Murphy told investors in April that Tesco is now at its biggest UK market share in ten years, standing at 28.5%. Murphy said the group’s “commitment to delivering the best value for customers remains firm.”
But costs beyond the UK’s control could rise. Reuters said Monday that concerns over inflation tied to shipping delays at the Strait of Hormuz and higher oil prices are pressing on UK markets. ING economist James Smith told Reuters, “there are limits” to how much room there is for fiscal loosening, regardless of changes in UK politics. Reuters
Middle East conflict is still the main worry for grocers. A Reuters analysis found firms around the world have flagged at least $25 billion in costs from the Iran war, pointing to higher energy prices and trouble in supply chains and trade routes. Reuters
Tesco goes into the week with investors looking past the next share price move to bigger questions. The key is whether its buyback, gains in market share, and tight pricing will keep countering pressure in a tougher retail climate. Shares are up, but competition in groceries is still intense.
