JP Morgan sees relief for Prudential after half-year results reaffirm targets

Prudential plc (PRU) reported double-digit growth in H1 2026, driven by Hong Kong, ASEAN, and asset management. The company reaffirmed its 2026-27 guidance and plans capital returns. PRU's subsidiary PCHL sold ICICI Prudential AMC shares for ~INR 30bn, reducing its stake to ~32.59%. Proceeds will fund share buybacks.

Jefferies maintained a 'buy' rating on Prudential PLC (LSE:PRU), citing strong demand in Hong Kong. The company reported first-half 2026 new business profit of $1.384 billion, exceeding estimates. Adjusted operating profit rose 9% to $1.81 billion, and adjusted profit after tax increased 10% to $1.52 billion. Prudential added $300 million to its share buyback program, funded by a reduction in its Indian shareholding.

Nvidia's (NVDA) shares rose after reporting a 106% year-on-year revenue increase to $96.2bn, beating expectations. The company issued full-year guidance, projecting 70% revenue growth for 2028. Prudential (PRU) increased its share buyback program by $300mn and raised its interim dividend by 15%. Halfords (HFD) upgraded its profit guidance to £55mn-£65mn for FY27, citing strong summer sales.

Prudential plc announced the disposal of a 2% stake in ICICI Prudential Asset Management Company Limited (IPAMC) on Indian stock exchanges, reducing its holding to 32.59%. The sale, at INR 3,065 per share, generated INR 30 billion (US$0.3 billion) in proceeds, with a 4.9% discount to the previous closing price. Prudential plans to return the proceeds to shareholders via buybacks, aiming to comply with Indian public float regulations.

Prudential sold a 2% stake in its Indian joint venture, ICICI Prudential Asset Management, for $300 million. The sale, at a 4.9% discount to the previous close, will fund a share buyback. Prudential retains a 32.6% stake and its governance rights remain unchanged, according to the company.

The FTSE 100 fell 0.5% as oil prices dropped, hurting energy companies like Shell and BP. Prudential reported an 8% rise in new business profit. UK vehicle production declined 11.6% year-on-year. Investors await Fed Chair Warsh's speech at Jackson Hole for monetary policy signals.