Graph 3: Tesco share price over the study period
Jennifer from Bloomberg described on 15th of November 2012 how UK Retail Sales dropped more than forecasted (Ryan, 2013) . This ties in with the significant drop shown on the 1st graph between the 2nd of November and the 20th. The expected decline in sales of food, which accounts for 41% of retail sales was expected to be 0.1 when in reality it turned out to be 0.6. This may help to explain the significant drop from 349 on the 12th of November to 329.20 on the 21st. Later on the same article it describes how inflation increased driven by university tuition fees thus explaining a drop in sales and the overall stock price due to higher prices.
Graph 5 Morrison share price over the study period
A news article from the 10th of January Focuses on the rise of UK Stocks following the festive period. Financial analyst Sara Sjolin (2013) analysed how Sainsbury's stock price fell following the bank HSBC cutting it from neutral to underweight. This essentially means that there is "a situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's weight in the underlying benchmark portfolio". In other words the bank was concerned regarding the performance of the supermarket. During this time however competitors such as Tesco saw an increase (shown on the above graph). These effects are thought to be in part brought about by the effect of the Bank Of England keeping the base rate at 0.5%. In theory increasing spending and decreasing saving.