This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Barclays shares are having a shocker of a day – down over 10% which now puts them around 2011 lows. The reasons, they say: FY adjusted pre-tax profit -2%, quarterly profits -50%, £1.4bn in additional provisions for PPI, dividend slashed and a muted outlook for investment ban
king division in Q1 2016. It’s the latter that’s really roiling investors though. Barclays’ investment banking arm, steered gracefully around the bailout guillotine in 2009, was last year seen as the lifeline of the company. With said lifeline now seriously frayed (and investors impatient for growth), we observe risk-hungry traders heading for a potentially much better placed mining sector. FY 2015 earnings have not disappointed (they’re down, yes, but what do people expect?!). Much more immediate is the outlook, and by Barclays’ own admission the future ain’t bright!
Augustin Eden, Analyst, 1 Mar
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
Comments are closed.