5 stocks that may benefit from Sunak’s new £1.4-bn investment fund

Highlights

  • The UK government is planning to launch a £1.4bn fund to attract more overseas investments.
  • Over £800 million of the new investment fund will go to support production and supply chain of EVs.

The UK government in a bid to revive the economy and flow of investments into the country has decided to launch a £1.4 billion fund, especially for electric vehicle production and life sciences research and development.

According to news reports, Chancellor of Exchequer Rishi Sunak in his upcoming autumn budget on Wednesday may also announce plans to attract highly skilled overseas workers and revise regulations to make it easier for international businesses to relocate in the UK.

International businesses with strategic importance will receive grants towards their schemes for investment proposals, after they have been evaluated to ensure they will offer value for the taxpayer.

The government aims to make it easier for businesses to reallocate in the UK.

Source: Copyright © 2021 Kalkine Media

A major chunk of the new Global Britain investment fund will be given to support investment in production and supply chain of electric vehicles in the Midlands and north-east England. In addition, £354 million will be used to raise investment in life science production, including preparing for future pandemics.

Through new lodging rules, the Boris Johnson government aims to make it easier for businesses to reallocate in the UK to bring it in line with countries such as New Zealand, Canada and Switzerland and expecting to launch a consultation.

Also read: Top 5 green energy distributors in the UK

As per reports, two in three UK businesses have asked Sunak to focus his autumn budget on attracting investment and encourage initiative in the country to fast-track the transition to a greener economy.  Around 55% of more than 1,000 businesses surveyed said that the Chancellor should use tax incentives to encourage carbon taxes and green tech, or both.

Other than this, the Covid recovery loan scheme, which provides loans of up to £10 million to businesses struggling due to pandemic, may be extended.  Also, the UK Infrastructure Bank, which launched in June to support infrastructure projects and tackle climate change, will be investing round £107 million in a project reconstruct the former Redcar Steelworks site and the River Tees. It will also develop a 450-meter quay to support the offshore wind sector, which will create 800 new jobs.  The bank has deployed £12 billion capital initially and £10 billion of government guarantees to help unlock investment.

Also read: Here’s how the unemployment dynamics changed in the pandemic

Let us take the look at the FTSE listed stocks that can get affected by the launch of this fund.

  1. AstraZeneca Plc (LON: AZN)

FTSE 100 constituent AstraZeneca plc is a global biopharmaceutical company engaged in discovery, development, production and marketing of biotechnology and pharma products. The shares of AstraZeneca Plc are trading at GBX 8,996 in the early hours of trade at 8:00 AM on Monday 25 October 2021. The shares of the company gave a return of 13.26% to shareholders in the last one year, and the market cap is £139,360.27 million.                 

  1. GlaxosmithKline Plc (LON: GSK)

GlaxoSmithKline Plc is a healthcare and pharmaceutical giant at the global front with focus on development and manufacturing of vaccines and consumer healthcare products. The company is a constituent of FTSE 100 Index.

The shares of Glaxosmithkline Plc are trading at GBX 1,424, up by 0.23% in the early hours of trade at 8:00 AM on Monday 25 October 2021. The shares of the company gave a return of 5.98% to shareholders in the last one year, and the market cap is £71,491.02 million.                 

  1. Indivior Plc (LON: INDV)

Indivior Plc is a specialty pharmaceuticals business based in England. The company presented new data on Opioid use disorder at CSAM-SMCA 2021 Scientific Conference recently.

The shares of Indivior Plc are trading at GBX 234.60, up by 0.51% in the early hours of trade at 8:00 AM on Monday 25 October 2021. The shares of the company gave a return of 131.12% to shareholders in the last one year, and the market cap is £1,680.65 million.                 

  1. Hikma Pharmaceuticals Plc (LON: HIK)

FTSE 100 constituent Hikma Pharmaceutical Plc is engaged in development, manufacturing and marketing of drugs at an international level that are used for the treatment of cancer, cardiovascular diseases, diabetes, and infections. The company has recently acquired US-based generic sterile injectables company, Custopharm Inc. from Water Street Healthcare Partners.

 The shares of Hikma Plc are trading at GBX 2,458, up by 0.49% in the early hours of trade at 8:00 AM on Monday 25 October 2021. The shares of the company gave a return of -3.61% to shareholders in the last one year, and the market cap is £5,662.04 million.                 

  1. OptiBiotix Health Plc (LON: OPTI)

OptiBiotix Health is a life sciences firm operating with focus on biotechnological research to modulate the human microbiome. Recently, the company’s SlimBiome has received approval from Canada for use as a licensed product for weight management. 

The shares of OptiBiotix Health Plc are trading at GBX 48.50, up by 3.19% in the early hours of trade at 8:00 AM on Monday 25 October 2021. The shares of the company gave a return of -10.37% to shareholders in the last one year, and the market cap is £41.33 million.                 

Also read: Which UK lenders are offering best mortgage rates?

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