Ashmore (ASHM), Superdry (SDRY) and BHP (BHP)
Higher for longer interest rates have not helped emerging markets fund manager Ashmore (ASHM) after another quarter of fund outflows totalling $2bn (£1.5bn) left estimated funds under management for the quarter ending 30 Jun at $49bn – a quarterly fall of 5 per cent and about $500mn below the consensus forecast. The shares were down 2 per cent in early trading.
Higher interest rates in developed world economies mean that investors have little risk appetite for emerging market debt and equities, even though emerging market returns have been positive across a range of comparisons.
Analyst Rae Maile at Panmure Liberum points out that at current share price levels the market capitalisation has a large amount of financial support; “The backing of the balance sheet remains an important prop, the market capitalisation being underpinned by £0.7bn of cash and seed capital”. The current market cap is £1.2bn. JH
Read more: Are higher interest rates boosting the economy?
Superdry to delist next week
Superdry (SDRY) will leave the London Stock Exchange on Monday, in a bid to save itself away from the glare of the public markets.
In April, the struggling fashion retailer published a turnaround plan, which involved leaving the London market, restructuring its UK property estate and retail cost base, and raising up to £10mn from shareholders.
The group has been struggling with low demand and rising debt since the pandemic, and said it would be best to implement changes “away from the heightened exposure of public markets”. Delisting could also result in “significant” annual cost savings.
Superdry’s market capitalisation now sits at just £3.78mn. The shares will continue to be traded on the JP Jenkins exchange for unlisted securities. JS
