Published: 25 July 2013

LONDON - Standard Chartered lagged behind a rising London market yesterday as emerging markets uncertainty led Morgan Stanley to turn cautious. The broker cut Chartered to “neutral” ahead of interim results due next month. The Reserve Bank of India's decision last week to raise key interest rates underlined the growing risk of bad debts in its key growth markets, it argued.

The lower growth and higher impairments that followed a hard landing for China would leave Chartered trading at 909p or 0.7 times tangible net asset value, said Morgan  Stanley. That left the stock current valuation of 1.4 times assets look full, it argued. Chartered ended the day down 0.7 per cent at £15.06, underperforming a wider market supported largely by earnings news. A choppy, low-volume session left the FTSE 100 up 0.4 per cent, or 22.99, at a two-month high of 6,620.43.

EasyJet was up 3.7 per cent to £13.85 after a better than expected quarterly update eased worries about summer demand. Management's positive guidance in spite of the heatwave in Northern Europe helped Tui Travel add 3.6 per cent to 377.3p, while Thomas Cook advanced 1.5 per cent to 150.8p.
- FT

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