Investors checked out of the supermarket sector today as Tesco reported a record annual loss of £6.4 billion and chief executive Dave Lewis signalled more turbulence for the sector to come.
Shares in Britain's biggest supermarket fell 5%, or 12.1p, to 222.6p as it led the top-flight fallers' board with its rivals close behind.
Morrisons dropped 4%, or 8.1p, to 190.4p while Sainsbury's slipped 10.2p to 263p as the wider FTSE 100 Index fell 34.7 points to 7028.2.
The grocery sector sell-off came after Tesco announced what were described by analysts as "eye-watering" losses for the full year to the end of February, after £7 billion worth of write-downs including a £4 billion hit on its property portfolio.
Shares had initially risen following the results as they showed signs that it was stemming the decline in like-for-like sales.
But Mr Lewis said: "The market is still challenging and we are not expecting any let up in the months ahead."
Tesco had already said there would be no final dividend for the year but today it gave no sign of when the pay-out would return. Mr Lewis said the business would not "slavishly" chase profit targets as it seeks to invest in a better customer experience.
The wider stock market was weighed down by latest anxieties over Greece as Germany warned of doubts that talks with the indebted country this week will yield an agreement over the release of much-needed bail-out funds.
Germany's Dax was lower though France's Cac 40 managed an improvement. In New York, the Dow Jones Industrial Average was up slightly on a mixed bag of corporate earnings figures.
In currency markets, the pound strengthened on the increased prospect of an interest rate rise after the minutes of the Bank of England's latest Monetary Policy Committee meeting said inflation might recover more quickly than previously expected.
Sterling was up a cent against the US dollar as it climbed back above the 1.50 mark and was also ahead by a cent against the euro, at 1.40.
Samuel Tombs, of Capital Economics, said: "The minutes show that the committee has become slightly less concerned by the downside risks to the inflation outlook."
In equities, big fallers included Hargreaves Lansdown after broker Jefferies cut its target price and removed its buy rating on the financial services firm. Shares were 36p lower at 1198p, a fall of 3%.
Rolls-Royce was the biggest riser in the FTSE 100 Index after it announced the appointment of Warren East, the former boss of chip designer ARM Holdings, as its new chief executive.
He will replace John Rishton, who is standing down after four years at the helm. Shares rose 41p, or 4%, to 1048p.
The biggest risers in the FTSE 100 Index were Rolls-Royce up 41p at 1048p, Travis Perkins up 55p at 2074p, Rio Tinto up 51.5p at 2863.5p and Hikma Pharmaceuticals up 38p at 2135p.
The biggest fallers in the FTSE 100 Index were Tesco down 12.1p to 222.6p, Morrisons down 8.1p to 190.4p, Sainsbury's down 10.2p to 263p and Sports Direct down 22p to 631p.
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