MARKET REPORT: Standard Chartered shares buoyed by a £770m buyback

Banking giant Standard Chartered topped the FTSE 100 leaderboard after profits hit an eight-year high and a new £770m share buyback program was announced.

In a stellar first six months of 2023, the Asia-focused group benefited from rising interest rates and improving trade in Hong Kong and China.

Group profit rose 29 per cent to £2.56 billion, reaching its highest level since 2015, beating analysts’ estimate of £2.47 billion.

And revenues rose by almost a quarter to £3.57 billion.

As a result, the bank raised its outlook for the year and expects revenues to grow between 12 and 14 percent, above an earlier forecast of 10 percent.

The positive performance also led the bank to pledge to pay back a further £770 million to investors.

Bill Winters, CEO of Standard Chartered, said: ‘We remain committed to sharing the group’s success with its shareholders.’ Shares rose 4 percent, or 28.2 pence, to 737.6 pence.

Standard chartered shares boomed in early January after reports that the largest bank in the United Arab Emirates was considering a takeover bid.

But First Abu Dhabi Bank decided not to make a formal offer for the bank, although there is still speculation whether it could reconsider a deal.

The FTSE 100 rose 0.02 percent, or 1.51 points, to 7694.27, while the FTSE 250 fell 0.77 percent, or 149.23 points, to 19,124.14.

In Europe, the main benchmark in Germany closed at a new all-time high, even though the country’s economy showed no growth in the three months to June.

Investors in Cineworld were dealt another blow after shares in the world’s second largest cinema chain were suspended due to ongoing restructuring measures.

The debt-riddled group said it is expected to go into administration on Monday, in a move that will see shareholders wiped out.

But Cineworld insisted its cinemas remain open.

The stock is down 90 percent so far this year.

At Rightmove, the real estate website reported a surge in demand from realtors and new home developers for its products and services.

Sales rose 10 per cent to £16.8 million in the first six months of 2023.

That was the group’s highest turnover growth in the first half of the year since 2018.

And its average revenue per advertiser (ARPA) rose 9 per cent to £1,411 per month, meaning Rightmove was on track to reach the top end of its previous forecast range of £95 to £105.

Russ Mold, investment director at AJ Bell, said the fact that fewer people were using Rightmove’s site “says something about the state of the real estate market.”

Still, shares rose 1.1 percent, or 6.2 pence, to 558.8 pence.

There were nervous moments for stockbroker WH Ireland, which will cut jobs because it “urgently” needed new funding.

It successfully raised £5 million by offering shares for just 3p each, a discount of 86.7 per cent.

When the fundraising was announced WH Ireland said it was in talks with City Watchdog, the Financial Conduct Authority, about a possible winding down if it can’t raise the money.

It was £1.9m below the FCA’s minimum capital requirement, meaning it needs to find at least that much to avoid closing.

The firm, which is based near Monument in the city, said it was necessary because “the widely reported multi-year low level of transaction activity in the financial capital markets” had hit its brokerage division.

Shares fell 66.7 percent, or 15 pence, to 7.5 pence.