This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Lloyds Banking shares are on the back foot this morning after Q3 results, despite no new PPI provisions making for a rather refreshing change. Also being ignored is upgraded FY guidance.
Investors are clearly more concerned with increased loan impairments (single large corporate + MBNA acquisition), worried about the potential for this to worsen into year-end. Having to wait until next Feb for news of any more capital returns (special dividends/buybacks) may also be playing its part, putting off those who’ve been waiting patiently for confirmation of more.
As much as the headlines make for attractive reading in terms of many improved financial metrics, the devil is, as always, in the detail.
LLOY shares are off their worst levels (down nearly 3% at one point) holding above August intersecting rising support and their 50-day moving average at 65.6p. Whilst there may be 2-3% on offer up to recent 68p highs, a break above this is still likely what bulls really need to see.
Mike van Dulken, Head of Research 25 Oct 2017
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.