Ashmore delivers more than ever

Ashmore delivers more than ever

Artjom Hatsaturjants, Research Analyst at Accendo Markets, commented this morning:

 

Shares in Ashmore rose almost 9% in early morning trading, topping the FTSE350, on news that Assets Under Management (AuM) increased by a whopping $7B in Q3. This represents the biggest quarterly surge since the quarter ended 30 Sept 2015 (+$7.8B), thanks to ravenous demand for exposure to emerging markets (EM).

 

Seeking perhaps to flee developed market volatility that kicked off at the end of January, client risk appetite strengthened on the backdrop of general interest in emerging markets which has pushed the MSCI Emerging Market Index up  by more than 20% YoY, easily outperforming major developed equity indices (-4% to +6%), themselves seen as overvalued. Management points to a host of drivers for EM interest, including “attractive valuations … underweight allocations, improved earnings and credit fundamentals, and relative currency strength …”.

 

Emerging markets may well be similarly off their Jan highs, however, this clearly hasn’t put any brakes on exposure, or indeed Ashmore financial performance. Investors are rewarding Ashmore shares, the stock price re-testing Feb 8thhighs when it reported H1 results. The question now is whether the robust performance reported today can continue and if the share price can put on another 5% to break higher and re-visit mid-Jan all-time highs.

 

Ashmore shares +8%. Accendo Markets does not have a rating or target price on any of the Ashmore.

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