StanChart stock dips after new sale rumours

 
Tim Wallace
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STANDARD Chartered’s share price tumbled yesterday on reports that a major shareholder is looking to sell out of the bank.

The stock initially fell more than three per cent on speculation in the Financial Times that Singapore state investor Temasek may sell its 18 per cent stake in Standard Chartered, worth roughly £6.4bn.

The price later recovered to end the day down 1.55 per cent.

“This is knee-jerk negative sentiment, which is likely to overhang the stock in the short term; longer term it potentially increases the chance of a takeover,” said Liberum Capital’s Cormac Leech. However, “some investors may view Temasek’s intention to sell as a negative in the context of slowing Asian growth.”

JP Morgan has previously been seen as a likely bidder for the bank, while Leech considers Chinese bank BoComm a potential match.

Temasek was unavailable for comment.