|
CFD Traders DiaryGentle rise masks underlying volatility in London28/4/2008 The headline FTSE 100 index feels becalmed at the moment, but there is plenty of action below the surface across many sectors. Once again the weekend press was full of fundraising stories in the bank sector after last week's cash call from RBS. The focus has now moved to HBOS, where the shares began steadily but have now seen some selling on reports it is planning a £4bn rights issue that will be announced tomorrow. If this is the case, traders may look for further initial weakness here in the same way as RBS dropped back a week or so ago. There was more gloom for housebuilders after their recent poor performance on the expectation that a survey from Savills will predict house prices could fall by 25% if the credit crunch persists, with the market declining by 10% this year and by a further 15 percentage points in 2009. We remain extremely cautious on the sector, and CFD traders should plan for more profit warnings.
At the top end today is Stagecoach which saw some hefty buying on Friday. Today it has said that trading has been strong and above expectations since it updated the market in February. Eps for the year ending 30th April are now expected to be around 20p, and this just might change the overall outlook for the transport sector, which has been another poor performer recently. We are approaching some fairly stiff potential resistance on the chart of Stagecoach, so today's strength so far might be about the best here for a few days |
|
|
