AppId is over the quota
AppId is over the quota
By Sudip Kar-Gupta
LONDON | Mon Oct 3, 2011 11:29am BST
LONDON (Reuters) - British fund managers Charles Stanley (CAY.L) on Monday warned first-half profit would fall after a recent stock market rout, while peer City of London Investment (CLIG.L) blamed the slump for a fall in assets under management.
Charles Stanley said the market slump, caused by fears over Europe's debt crisis, had led to lower revenue at its securities division which would mean that first-half profit would be below the previous year's level.
The warning caused Charles Stanley shares to drop by 10.6 percent to 240 pence, close to a 52-week low. At that price, Charles Stanley has a market capitalisation of around 110 million pounds.
"It's no surprise, they've been heavily impacted by the market downturn and I'm sure they won't be the last," said one of Charles Stanley's top five institutional investors, who declines to be named.
Another broker added, however, that Charles Stanley's shares could make a good pick for bargain-hunting investors.
"The shares still look relatively inexpensive even though sentiment towards these stocks is quite negative in these markets," said the broker, who declined to be named.
The economic turmoil has also hit City of London Investment Group, which focuses on emerging markets.
City of London Investment said its funds under management at the end of September had fallen to $4.5 billion (2.9 billion pounds) from $5.8 billion at the end of May.
City of London Investment's shares were down 5 percent at 350 pence, giving the company a market capitalisation of around 90 million pounds.
(Editing by Myles Neligan; Editing by Erica Billingham)
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