1501 GMT - The U.K. government's reduction of its stake in NatWest is welcome, AJ Bell's Russ Mould says in a market comment after the state lowered its holding in the British bank to 11.4%. "While NatWest is still subject to headwinds from regulation in the banking sector, having a broader shareholder base is seen as a positive from an investment perspective," he notes. Chancellor Rachel Reeves is vindicated in her decision to scrap a public offer initiative from the previous government, which she says would have been a bad use of taxpayer money, Mould adds. Reeves managed to get a better price by waiting for the market to strengthen and restricting the sale to institutional investors, he notes. Shares rise 3.8% to 395.3 pence and are set to close at their highest level since May 2011. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
November 11, 2024 10:01 ET (15:01 GMT)
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