Shares in J Sainsbury were up on the FTSE 100 in afternoon trading and are a "weak hold" ahead of tomorrow's first quarter trading statement.
The supermarket group reported better than expected full year results in May, with revenue up five per cent to £21.4 billion and profit up 17 per cent to £610 million, higher than the £595 million expected.
Today Sainsbury's rival Tesco reported a rise in sales of 8.2 per cent in the first quarter, helped mainly by growth in Asia, where it is fast becoming a major player.
By contrast Sainsbury is attempting to expand in Britain, with as many as 100 its new convenience stores to be opened this year alone.
Keith Bowman, analyst at Hargreaves Lansdown, said, "Against a backdrop of ongoing concerns regarding intense UK competition, market consensus currently denotes a weak hold ahead of the update."
By 15:22 shares in J Sainsbury were up 1.50 per cent on the FTSE 100 to 324.50 pence per share.