>>Sainsbury share price defies its rocky ride in july

Who’d have thought it? Over the past four weeks Sainsbury has suffered from a concerted onslaught from the press, poor first quarter results, the referral of its potential offer to acquire 171 Somerfield stores to the Competition Commission and the loss of its number two market position to Asda.

But its share price rose by nearly 7% over the same period. In fact it has outperformed the FTSE 100.

“We are surprised at how resilient the shares have been,” said Mark Hughes of Numis Securities. However he said the market was fairly apathetic and only reacted to appalling news. Falling behind Asda was just a disappointment for the chain and would not hit profitability or dividend yield.