FTSE 250 movers: Jefferies upgrade boosts Man Group

FTSE 250: 20,057.97 +0.53% at 1542

Analysts at Jefferies upgraded investment manager Man Group from 'hold' to 'buy' on Monday but lowered abrdn from 'buy' to 'hold' as it took a fresh look at the UK sector.

Jefferies said Man Group's shares offered "cheap downside protection" should the current "more constructive market backdrop" start to unravel.

Whilst net flows will have deteriorated in the second half, due to LDI and rebalancing activity, Jefferies stated that gross inflows had "remained strong"

"Extraordinary capital returns should remain an attractive recurring feature of the equity story," said the analysts, who stood by their 285.0p target price on the stock.

Ashmore Group reported assets under management increasing $1.2bn over the December quarter, comprising positive investment performance of $3.8bn and net outflows of $2.6bn.

The FTSE 250 company said a positive market environment in the three months ended 31 December, offset by some institutional investors taking asset-allocation decisions, meant net outflows were about half the level of the previous quarter.

Net outflows were experienced in local currency, including a reduction of $0.4bnin overlay, blended debt, external debt and there was a small net outflow in the corporate debt theme.

It said equities flows were neutral over the three months, adding that there was a return of capital from funds in the alternatives theme following successful realisations.

Reflecting a “modest easing” of global macro concerns, its emerging markets segment delivered “strong returns” over the quarter, with the main fixed income and equity benchmark indices rising by between 5% and 10%.

Ashmore said its active investment processes delivered outperformance in the period across a broad range of fixed income and equity strategies, which the board said reflected the “typical profile” of alpha creation as markets started to recover from oversold levels.

“Emerging markets' strong performance over the past three months reflects a positive shift in investor sentiment against a backdrop of light positioning and highly attractive valuations,” said chief executive officer Mark Coombs.

“Some of the headwinds of 2022, such as the Fed's aggressive policy tightening, are receding, China re-opening its economy will stimulate activity more broadly, and a number of emerging countries are starting to see deflation as a consequence of effective monetary policy action over the past two years.”

Coombs said that as a result, Ashmore was expecting investor risk appetite to increase over the next 12 months, underpinning further market performance and ultimately leading to capital flows into the emerging markets segment.

“Ashmore is well-positioned for this environment, with active management delivering outperformance across equity and fixed income strategies and current market valuations supporting further performance in the years ahead.”

Gold miner Centamin on Monday said Egypt’s Supreme Constitutional Court (SCC) had had ruled that a local law stopping third-party challenges to a deal between the government and an investor was constitutional.

The case relates to a challenge started in 2011 which wanted halt to deals struck in Egypt in relation to privatisations which took place during President Hosni Mubarak's administration (1981 to 2011). Centamin runs the Sukari gold mine in Egypt.

“The SCC judgment gives Centamin the right to request the SAC to rule that the 2011 challenge to the Concession Agreement is now legally inadmissible on the basis that the original complainant had no capacity to bring the claim as he was not a party to the Concession Agreement,” Centamin said.

FTSE 250 - Risers

ASOS (ASC) 796.00p 6.85%
Ascential (ASCL) 221.60p 6.74%
Carnival (CCL) 793.20p 4.40%
Playtech (PTEC) 549.50p 4.37%
888 Holdings (DI) (888) 92.55p 3.70%
Man Group (EMG) 236.60p 3.32%
Network International Holdings (NETW) 317.40p 3.05%
Workspace Group (WKP) 497.20p 3.03%
Trainline (TRN) 310.60p 3.02%
Howden Joinery Group (HWDN) 683.80p 2.92%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 162.70p -4.85%
Darktrace (DARK) 253.40p -3.10%
Hiscox Limited (DI) (HSX) 1,081.50p -2.79%
Centamin (DI) (CEY) 119.70p -2.76%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 85.80p -2.50%
Marshalls (MSLH) 315.00p -2.42%
Quilter (QLT) 101.55p -2.03%
Direct Line Insurance Group (DLG) 172.40p -2.02%
Barr (A.G.) (BAG) 538.00p -1.82%
PZ Cussons (PZC) 217.00p -1.81%