FTSE 100 movers: StanChart and Prudential rally on China news
London’s FTSE 100 was up 0.1% at 7,497.75 in afternoon trade on Tuesday.
Asia-focused Standard Chartered and Prudential rallied following a report that Chinese authorities are considering a package of measures aimed at stabilising the stock markets.
According to Bloomberg, policymakers are looking to mobilise about 2 trillion yuan, mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilisation fund to buy shares onshore through the Hong Kong exchange link.
Prudential also got a lift as JPMorgan Cazenove reiterated its ‘overweight’ rating on the shares, saying concerns about the stock reflect fear rather than fundamentals.
The bank noted that Prudential is trading at a valuation last seen saw at the start of the pandemic, when one of its main markets, Hong Kong, saw a closure of a vast proportion of its business, and at a time when there was deep investor scepticism about the separation of its US life insurance business.
"This largely reflects concern about the Chinese economy, as well as a number of other factors such as the growth outlook, asset and capital risk," it said. "However, we think many of these concerns reflect fear rather than fundamentals."
Miners Anglo American and Rio Tinto were also boosted by the news on China.
FTSE 100 - Risers
Ocado Group (OCDO) 583.00p 3.81%
Standard Chartered (STAN) 600.20p 3.38%
Anglo American (AAL) 1,795.40p 2.52%
Prudential (PRU) 813.00p 2.08%
International Consolidated Airlines Group SA (CDI) (IAG) 147.80p 1.93%
WPP (WPP) 741.60p 1.87%
Rio Tinto (RIO) 5,385.00p 1.83%
Smurfit Kappa Group (CDI) (SKG) 2,930.00p 1.74%
St James's Place (STJ) 659.40p 1.67%
JD Sports Fashion (JD.) 116.60p 1.66%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 301.50p -2.40%
CRH (CDI) (CRH) 5,442.00p -1.84%
Compass Group (CPG) 2,126.00p -1.80%
Admiral Group (ADM) 2,513.00p -1.80%
British American Tobacco (BATS) 2,296.50p -1.63%
Unite Group (UTG) 992.00p -1.49%
London Stock Exchange Group (LSEG) 9,070.00p -1.48%
Haleon (HLN) 319.25p -1.47%
AstraZeneca (AZN) 10,436.00p -1.45%
InterContinental Hotels Group (IHG) 7,394.00p -1.28%