Three developing stories at the UK stock market open.
1. Ashmore trim costs, cite appeal of emerging markets valuations
Emerging markets asset manager Ashmore Group LON:ASHM has issued a half year update noting AUM as being broadly unchanged, but management costs are down by 17%. Management note the fact that valuations in the US are high and this has resulted in many investors having overweight positions. In turn, they argue there’s a benefit to be had if they consider moving into more attractively priced EM opportunities.
2. L&G investors to benefit from sale of US division
Insurers Legal & General LON:LGEN have this morning announced the sale of its US protection business for $2.3bn. On completion, this will fund a £1bn share buyback and management now expect to return the equivalent of 40% of the market cap to shareholders from 2025-2027 in capital returns. The transaction supports L&G’s long term strategic goals.
3. Deep discount funding round from Belluscura
Belluscura LON:BELL, the developer of portable oxygen generators, has this morning provided an update on its latest funding round. This was completed at a significant discount and more than doubled the number of shares in issue so the share price will inevitably take a hit at the open. The net proceeds of the Fundraise received will be used by the Company to purchase product inventory, for general working capital purposes and to bolster the Company’s the balance sheet.
