Tesco Shares Edge Higher Amid Buyback Program, Investor Sentiment Cautiously Optimistic

Tesco PLC (TSCO.L) shares gained 0.5% in early London trading, reaching 417.5 pence, as the supermarket giant's £1.45 billion share repurchase program continues to bolster investor confidence. The stock remains within its 52-week range of 310.3 to 480.5 pence, reflecting stable demand despite post-holiday market volatility.

The buyback initiative, which began in April 2025, has seen Tesco repurchase £1.436 billion worth of shares to date. Recent transactions include 475,248 shares bought at an average price of 425.18 pence on 8 January. Market participants view the program as a key support mechanism, reducing share supply and reinforcing shareholder value.

Investors remain attuned to broader retail trends, with Tesco's performance serving as a barometer for UK consumer spending. Upcoming inflation data and April's earnings report could further influence market sentiment. The grocer maintains its growth guidance despite softer like-for-like sales during the Christmas period.