Why the Virgin Money (ASX:VUK) share price surged 15% today

The Virgin Money share price surged by nearly 15% today on the back of optimism of a coronavirus vaccine and general outlook of the economy.
The post Why the Virgin Money (ASX:VUK) share price surged 15% today appeared first on Motley Fool Australia. –

rising UK money represented by gold pounds sterling symbols floating high in the sky

The Virgin Money UK (ASX: VUK) share price was one the highest movers on the ASX today, rising by almost 15% to $2.40. Meanwhile the ASX has also gained across most sectors, still fuelled by the news that a vaccine for COVID-19 is imminent. The Virgin Money share price was the highest gainer of all the mid cap stocks today, with all major bank shares also moving in the same direction. 

Why did Virgin Money UK rise today?

As mentioned, the big jump in the Virgin Money share price today was mainly driven by optimism around the availability of a vaccine. The share price was also buoyed by the news that consumer confidence in Australia is at a seven-year high. Meanwhile in London, where Virgin Money operates, the FTSE 100 Index (FTSE: UKX) has risen for two consecutive days, with a total gain of 6.46%. Yesterday’s FTSE closing level is the highest since 23 June. The market euphoria is continuing despite the United Kingdom showing a jump in its unemployment level from 4.5% to 4.8% in the September quarter, according to official data released yesterday. 

Why is the UK economy important for Virgin Money?

Virgin Money derives all of its income from the UK. The history of Virgin Money dates back to 2016, when National Australia Bank Ltd. (ASX: NAB) demerged its UK operations in Clydesdale Bank and Yorkshire Bank (known collectively as CYBG). The combined entity of CYBG and Virgin Money was renamed Virgin Money UK PLC in 2019.

Virgin Money is a mid-sized bank, and its market share is dwarfed by the UK’s big five banking entities. Around 80% of Virgin Money’s loan book is in mortgages, with 30% of this concentrated in London’s property market alone. Virgin Money UK will be renamed to Virgin Money in 2021.

How has the Virgin Money share price performed in 2020?

In its quarterly trading update to 30 June 2020, Virgin Money announced that it had not seen any significant provisions or credit losses due to the COVID-19 pandemic, mainly due to government support. The Virgin Money share price had lost around 40% on a year-to-date basis before today’s 15% jump. With today’s gains, the Virgin Money share price is now 32% lower year to date and has a market capitalisation of $2 billion. 

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Virgin Money (ASX:VUK) share price surged 15% today appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!