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Virgin Money UK PLC Up 17% After UK Election Results

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

Australian listed, UK business Virgin Money UK PLC (ASX: VUK) has opened up over 8% Monday, making it the best performer in the ASX 200. This contributes to VUK’s strong market performance this month, rallying 17% since the landslide victory of Boris Johnson’s Conservative Party in the UK election late last week. The ASX 200 was up as much as 1.8% during the session, off the back of positive US-China trade deal news and the aforementioned UK election news.

virgin Money OK PLCVirgin Money UK PLC (ASX: PLC) has soared 17% since UK election results on Thursday. The stock has now rallied 52% since late November. (Credit: Insurance Business America).

 

Virgin Money UK PLC (formerly CYBG PLC) is a holding company that owns Clydesdale Bank, Yorkshire Bank and Virgin Money UK. The company was formed by the National Australia Bank (NAB) in 2016. VUK’s share price surged in early December after releasing their financial results, which met consensus expectations. The company generated revenue of over A$1b and saw strong growth in their lending and deposits, driven by the business (up 4.5%) and personal (up 16%) segments. The stock has now rallied 52% since late November, impressive especially when compared to the ASX 200 (ASX: XJO), which has fallen 1.8% in the same period.

Virgin Money UK PLC investors appear pleased with landslide victory of Boris Johnson’s Conservative Party, as the company should benefit from the more business friendly party, who bears a majority to force through legislation. The election results suggest an imminent British exit of the European Union, potentially as soon as next month. As such, Britain will be able to negotiate new trade deals with trading partners outside the European Union. Although some fear Brexit may result in a UK economic downturn, for the time being Virgin Money is benefiting from Johnson’s Conservative Party election victory.

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

 

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