Shares in Morrisons hit a 10-year high of 286.25p yesterday following a strong Christmas trading update from the supermarket chain.

Like-for-like sales excluding fuel rose 6.3% in the six weeks to 7 January, with total sales up 5.2% during the period.

Analysts upgraded their full-year profit forecast for the retailer to £315m to £320m. “This is a real recovery with good sales and margin improvement,” said Citigroup retail analyst David McCarthy.