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CFD Traders DiaryBanks dominate early activity as traders await RBS rights details21/4/2008 The FTSE 100 index saw strong follow through buying at the open after last week's excellent performance, but sellers got the better of the important bank sector, making the index unchanged mid-morning. The big concern is the scale of the forthcoming RBS rights issue, and of course whether other banks will want to come to the trough. If so, there could be a fairly sizeable overhang of sector stock, and despite one or two commentators suggesting the first phase of the credit crunch is over, it could be rocky for some financials for the next few weeks. Chancellor Alistair Darling will require banks to disclose the full extent of their sub-prime damage and take steps to repair balance sheets as a condition of the government's well flagged £50bn bail-out of the mortgage market.
Elsewhere, it was volatile but there were some good bullish situations around. ITV was the best early performer on rumours that BSkyB had received expressions of interest of interest in its stake in ITV from European broadcaster RTL. The volume and price move has been fairly impressive so far, and if it holds we may be on the cusp of a major trend change here for ITV, so this is one to watch.
Rumours about British Energy continued over the weekend with talks of several suitors currently undertaking due diligence, and the shares are testing the upper end of the recent range. We remain firmly bullish here, and eagerly await the next expression of formal interest. |
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