Temasek will wait before deciding on StanChart stake
Standard Chartered got a boost from a report that a sovereign wealth fund was willing to give it more breathing room to successfully complete its turnaround, before deciding what to do with its stake in the lender.
Banks
4,065.49
12:54 26/04/24
FTSE 100
8,118.29
12:55 26/04/24
FTSE 350
4,459.43
12:55 26/04/24
FTSE All-Share
4,412.88
12:55 26/04/24
Standard Chartered
687.80p
12:55 26/04/24
Reuters reported that, for the moment, Singapore´s SWF, Temasek, would hold off from deciding the fate of its approximately £2.6bn stake in the Asia-focused lender.
In a vote of confidence for the bank, in a research note sent on 16 December analysts at JP Morgan said that following the recent successful $5.2bn rights issue and after the Bank of England´s stress tests, in their view investors´ capital concerns had been adressed.
Trading on 0.6 times price-to-tangible net asset value, StanChart shares were reflecting a downbeat outlook for the banks´ non-performing loans in emerging markets. However, the stock price was not discounting the now lower downside risks and positive earnings gearing to higher US rates from chief Bill Winter´s new strategy.
JP Morgan analyst Raul Sinha reiterated his 'overweight' recommendation and 870p target price on the shares.