Standard Chartered share price rises after Aberdeen reiterates support

on Feb 4, 2015
Updated: Oct 21, 2019

Standard Chartered Plc’s (LON:STAN)share price has received a significant boost after receiving backing from one of its top shareholders. During a conference call with analysts yesterday, Martin Gilbert, chief executive officer of Aberdeen Asset Management Plc (LON:ADN), described StanChart as a “very good bank” and reiterated the fund manager’s support for the lender.

Following the positive comments, Standard Chartered shares closed up five percent in Hong Kong early today, where the bank has a second listing. In London the stock was up 1.4 percent at 928.00p, as of 09:27 UTC.
In its report on the news, Bloomberg quoted Jim Antos, a Hong Kong-based analyst at Mizuho Securities Asia , who suggested that Aberdeen’s “positive” stance “might possibly reflect their optimism about a future senior management change”. According to recent reports, Singapore’s Temasek Holdings Pte and Aberdeen have urged Standard Chartered to replace CEO Peter Sands by the end of the year. Temasek and Aberdeen are StanChart’s two biggest shareholders.

Ronald Wan, chief China adviser at Asian Capital Holdings told Bloomberg that Aberdeen’s comments were “sending a positive message to other investors”. However, Wan cautioned that the “the bank’s fundamental problems are still there”.
StanChart has in recent years taken serious hits to its profits amid slowing economic growth in Asia, the main geography of its operations. Last month, the company announced a plan to deliver $400 million in cost savings by shutting its equities business and axing 4,000 jobs.
According to the Financial Times, as of Jan 31, 2015, the consensus forecast amongst 51 polled investment analysts covering Standard Chartered suggests investors should hold their position in the company. The same consensus estimate has been maintained since the sentiment of investment analysts deteriorated on May 08, 2013, the FT notes.
As of 11:10 GMT, Wednesday, 04 February, Standard Chartered PLC share price is 934.05p.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
Finance & Banking Stock Market