MARKET REPORT: Investor stampede sends Abrdn shares into the red

Asset manager Abrdn was among the biggest fallers on the FTSE 100 leaderboard following a sharp rise in clients pulling their money out of funds.

On a bleak day for investors, chief executive Stephen Bird warned that a cocktail of economic woes – from geopolitical tensions to soaring inflation and credit risk – had hit investments.

‘If 2022 was one of the hardest investing years in living memory, 2023 is shaping up to be equally challenging,’ Bird said.

Shares sank 11.7 per cent, or 25.5p, to 193p.

Bird has aimed to diversify the firm and simplify its asset management business.

Abrdn chief exec Stephen Bird (pictured) said geopolitical tensions, soaring inflation and credit risk – had hit investments.

But his gloomy outlook came as the group’s net outflows – the amount of money clients pulled out – rose 16 per cent to £4.4billion in the six months to the end of June.

And its assets under management fell 1 per cent to £495.7billion – falling short on the £507billion analysts expected. 

Profits of £127million were 10 per cent higher than the same period a year earlier but failed to meet market forecasts of £133million. It was not all doom and gloom, however.

Revenues were ahead of expectations, rising 4 per cent to £721million. Abdrn also increased its share buyback programme, which it launched in June, from £150m to £300million.

The FTSE 100 fell 0.36 per cent, or 27.07 points, to 7527.42 and the FTSE 250 inched down 0.11 per cent, or 20.13 points, to 18841.54.

Insurer Beazley was among the highest risers on the blue-chip index, gaining 5.2 per cent, or 26p, to 530p after brokers at Berenberg raised the target price to 850p from 825p amid forecasts of a sharp increase in insurance revenue.

Spirax-Sarco boss Nicholas Anderson is to step down early next year after a decade in charge. He will be replaced by the engineering group’s finance boss Nimesh Patel. Shares fell 0.8 per cent, or 85p, to 10785p

Stock Watch –  MyHealthChecked

Shares in MyHealthChecked tumbled after it posted lower revenues amid a slump in demand for Covid lateral flow test kits.

The Cardiff-based home-testing healthcare firm’s revenues of £2.5million in the six months to the end of June fell short on the £9.8million it made during the same period a year earlier. 

It said demand for Covid tests is expected to be lower in 2023 compared to the previous 12 months, despite reports of a new strain. 

Shares plunged 27.4per cent, or 4.25p, to 11.25p.

Wealth manager Quilter said soaring inflation and rising interest rates has increased the return generated on shareholder funds more than it expected, leading to profits rising 25 per cent to £76million in the first six months of 2023.

The group said it expected to save £45million by the end of 2023 – a year earlier than planned – alongside an extra £50m by 2025. Shares soared 13.4 per cent, or. 9.55p, to 80.85p.

TI Fluid Systems hiked its dividend for 2023 to £30million – up from £11million last year – and announced plans to launch a share buyback of up to £34million.

The group, which makes cooling systems for brakes in cars, reported revenues of £1.77billion in the six months to the end of June, 13.4 per cent ahead of the same period the year before. Shares surged 15.4 per cent, or 20p, to 149.8p.

Specialist engineering group Rotork added 0.6 per cent, or 1.8p, to 297.6p after it increased its order intake, which rose to £334.7million, beating analyst expectations of £320million.

Building materials firm Sig maintained its profit forecast for this year amid hopes its measures designed to improve the productivity of its business will come into effect later in 2023. Shares gained 4.4 per cent, or 1.25p, to 29.8p.

Zotefoams sank 2.6 per cent, or 10p, to 375p after the group, which makes the soles of Nike’s high-performance shoes, warned of reduced inventory in some of its markets amid forecasts of squeezed consumer spending.

Deals signed with Next and Sainsbury’s in 2023 helped Sanderson Design Group’s licensing division report revenues of £6.9million in the six months to the end of July which were 81.6pc ahead of the same period the year before.

The strong performance meant the William Morris wallpaper seller’s profit for the period should come in slightly ahead of the £6.3million it made during same period last year. Shares rose 5.4 per cent, or 5.5p, to 107.5p.