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CFD Traders DiaryRBS completes a busy bank reporting week and pleases the market28/2/2008 Results from the UK's second biggest bank were eagerly awaited this morning, and RBS did not disappoint with a 9% increase in full year profit, which was ahead of market forecasts. Of more interest though was the decision to raise the dividend by 10%, suggesting they were confident on their underlying reserves, and if so, we may be ready to see another rerating of the major banks after what has been a very good couple of weeks. Also in the financials, Aviva sounded very confident as it reported a better than expected 1% increase in full year operating profit on a European Embedded Value basis despite exceptional losses caused by last summer's floods. With it now aiming to double IFRS total earnings per share by 2012 at the latest and to drive further dividend growth, there again could be a case for value buying and the shares were towards the top of the list mid-morning with a rise of 4%.
Although there were plenty more results to chew on, an interesting story overnight suggested that Vale's expected $85bn takeover of Xstrata was on the brink of collapse, and the latter's shares were down over 3%, but it has been mischievously suggested that this is simply a tree shake to force out weak holders and enable the bulls to buy in some cheap stock before the next expected higher bid. We shall see and the key as always is where the shares end up by the close of dealing tonight. |
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