What Happened?
Shares of global financial services firm Morgan Stanley (NYSE: MS) jumped 3.6% in the morning session after its investment management division announced an investment in a Canadian power project, amid a broader market rally.
The investment was made through Morgan Stanley Infrastructure Partners, the firm's private infrastructure investment platform. The funds are directed toward the Greenlight Electricity Centre, a 932-megawatt gas-fired power generation project in Sturgeon County, Alberta. The stock's rise also came as the broader market gained, with tech stocks rebounding after a holiday weekend.
After the initial pop, the shares cooled down to $221.16, up 3.4% from the previous close.
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What Is The Market Telling Us
Morgan Stanley’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 19 days ago when the stock gained 2.6% on the news that its investment management division, alongside partner Ridgeback Group, announced the acquisition of a UK private rental business for approximately £1.05 billion.
The deal is for the Private Rented Sector business of London & Quadrant Housing Trust, which trades as Metra Living.
The purchase secures a portfolio of about 3,200 homes across Greater London. This move signifies a substantial investment into the UK's residential property market, and the acquisition also includes Metra Living's operating platform, team, and existing debt facilities. The SpaceX afterglow added a second layer. Morgan Stanley co-led the stabilization process for the largest IPO in history the previous week, and SpaceX continued to surge, passing Microsoft in market cap at a $2.94 trillion valuation. The performance of the deal reinforces MS's standing as a bank of choice for capital markets.
Morgan Stanley is up 21.6% since the beginning of the year, and at $221.16 per share, it has set a new 52-week high. Investors who bought $1,000 worth of Morgan Stanley’s shares 5 years ago would now be looking at an investment worth $2,452.
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