STOCKS NEWS EUROPE-Sainsbury up as H1 profit tops hopes

Shares in Sainsbury (SBRY.L) rise 2.7 percent to 336.3 pence after Britain's third-biggest grocer posts first-half profits towards the top end of analysts' forecasts, although it does caution that the second-half will be tougher.

Freddie George, analyst at Seymour Pierce, says he is maintaining his 2009/10 profit forecast of 625 million pounds ($1.05 billion).

"Although the interim results came in at the top end of expectations there will be some nervousness arising from the company's recent sales performance," he says.

On Tuesday analysts said data for the last four weeks from market researcher TNS Worldpanel put Tesco's (TSCO.L) sales growth ahead of Sainsbury's. [ID:nLA703253]

Tesco shares are up 1 percent.

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Reuters Messaging rm://james.davey.reuters.com@reuters.net

($1=.5973 Pound)