LONDON (ShareCast) - Life insurance stocks were performing well on Monday as financials benefited from strong start to the week for stock markets across the globe.
Prudential was among the best performers after Panmure Gordon hiked its target price for the stock from 1,376p to 1,453p and retained its 'buy' rating following last month’s better-than-expected first-half results.
"We maintain our view that Pru is undervalued and that the market currently fails to reflect the value of the four key businesses in the share price,” said analyst Barrie Cornes.
Others in the sector were also making gains today, including Standard Life, Aviva, Legal & General, St James’s Place, Resolution, Phoenix and Old Mutual.
David Nish, Standard Life’s Chief Executive, was reported as saying at the Liberal Democrat conference in Glasgow this weekend that the Retail Distribution Review (RDR) – a measure by regulators to improve standards and transparency among financial advisors - will boost the reputation of the financial services industry.
“One of the big changes this year in January is the RDR so if you think about how financial services products have been sold over the past 20 years there has been an inherent financial bias induced because of commission, which has now been removed.
“We are beginning to get into the concept of transparency of pricing, i.e charged products, or advice based on fee, i.e sitting down and negotiating with your adviser. It is a fundamental change in financial services and it should help the backdrop of improving the reputation of the industry.”
Top performing sectors so far today
Life Insurance 6,405.36 +1.75%
Software & Computer Services 1,157.39 +1.21%
Chemicals 10,279.88 +1.17%
Tobacco 37,177.29 +1.12%
Travel & Leisure 6,768.65 +1.11%
Bottom performing sectors so far today
Aerospace and Defence 5,123.60 -0.42%
Household Goods & Home Construction 10,369.68 -0.34%
Oil & Gas Producers 7,772.63 -0.07%
Media 6,139.65 -0.01%
BC
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