ASX 200 supermarket shares lead as household spending jumps

S&P/ASX 200 Index (ASX: XJO) supermarket shares are taking off on Tuesday amid the release of the latest household spending data.

The Australian Bureau of Statistics (ABS) found household spending rose in May, lifting 7.9% higher than it was at the same time last year.

The news might have increased sentiment for ASX 200 supermarket shares. They’re currently leading the S&P/ASX 200 Consumer Staples Index (ASX: XSJ). In turn, the consumer staples sector is out in front of the broader market.

Let’s take a closer look at what’s going on with ASX 200 supermarket shares today.

ASX 200 supermarket shares outperform

ASX 200 favourites Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) are outperforming most of their peers on Tuesday.

The Woolworths share price is currently leading the company’s home sector with a 2.2% gain. That brings the stock up to trade at $37.23 apiece.

Meanwhile, the Coles share price is coming in second best with a gain of 2.05%. It’s trading at $18.69.

Their gains have helped boost the consumer staples sector into the top spot. The sector is up 1.33% at the time of writing. For comparison, the ASX 200 is up just 0.12% right now.

The latest news from the ABS may have boosted the market’s interest in the supermarket giants.

Though, the Woolworths share price might be being lifted by its addition to Goldman Sachs’ conviction list.

The broker likes the supermarket giant’s core business, adjacent revenues, and valuation, my Fool colleague James reported earlier today.

The consumer staples sector is also being driven higher by shares in Endeavour Group Ltd (ASX: EDV) – which hit a new 52-week high today, Graincorp Ltd (ASX: GNC), and Elders Ltd (ASX: ELD).

They’ve gained 0.7%, 0.3% and 0.3% respectively at the time of writing.

The post ASX 200 supermarket shares lead as household spending jumps appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Eagers Automotive, Viva Energy, Woolworths, and Zip shares are rising
• Why Goldman Sachs added Woolworths shares to its conviction list
• Here’s why the Coles share price had a volatile FY22
• 5 things to watch on the ASX 200 on Monday
• Why ‘superior operations’ puts Woolworths shares in this broker’s buy basket

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Elders Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wXKnOQG