The Legal and General share price was sharply lower today, as investors reacted negatively to the company’s decision to pay out 250 million pounds in a pension buy-in deal with the Selecta UK Pension plan.
The pension plan, which Selecta UK Ltd sponsors, enables Selecta UK Ltd to reduce future potential funding risks while providing additional business security for its members and stakeholders.
Despite the intraday setback, the company is pushing ahead with the next phase of its modular homes scheme, acquiring a site in Kent for this purpose. Legal and General hopes to develop 80 homes in this scheme, which will bring the total number of modular homes it operates to 750.
The Legal and General share price is down 1.76% on the day but could end the week flat if the price closes at this level.
The intraday decline leaves the 280.6 support at risk of a breakdown. If this happens, 275.0 becomes the next downside target. The 20 September low at 268.7 is the site of the next downside target if the bears can take out 275.0.
On the other hand, bulls would seek a recovery above 286.0 for the uptrend to resume. This move then brings 289.2 and 293.3 under focus, with a view to surmount the 2021 highs last seen at 299.2 on 13 April.