Tesco jumps 15% as supermarkets rally on cost-cut plans

Tesco shares rose as much as 15% today after the retailer announced plans to save £1bn, prompting a wider rally for the troubled supermarket sector.

Tesco said this morning it is planning a cost-cutting exercise which will save £1bn during 2015/16. The supermarket has also cancelled plans to pay a final dividend for 2014/15.  It hopes to restructure central overheads and simplify store management in order to save £250m per year, at a one-off cost of £300m. Shares were up 15% at 209p by early afternoon, as the supermarket's dividend cut was overlooked by investors keen to focus on the positives. The rise represents the first time Tesco shares have traded back above 200p since late-September last year. The company's shares shed 5...