Monday, October 16, 2006
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Lloyds TSB sparks frenzied trading
By Robert Orr
Published: October 14 2006 03:00 | Last updated: October 14 2006 03:00
The FTSE 100 closed at a five-year high yesterday, surpassing the previous peak in April amid heavy trading in Lloyds TSB.
Talk was that Lloyds, the UK's fifth largest lender, was in the sights of US giant Citigroup, which is known to be on the lookout for an acquisition in Europe.
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While this speculation is nothing new, yesterday's activity was more frenzied than usual, with one dealer describing trading in the stock as "extraordinary".
Sentiment was also helped by an upgrade from HSBC, which said that Lloyds would be the big beneficiary of a new savings boom. "We believe the household savings market has turned a corner, [and] profits here could double over the next five years. We highlight Lloyds TSB as a beneficiary," said Robin Down,analyst.
With 85m shares traded, Lloyds ended 3.9 per cent higher at 581p, its highest close since November 2002.
By Robert Orr
Published: October 14 2006 03:00 | Last updated: October 14 2006 03:00
The FTSE 100 closed at a five-year high yesterday, surpassing the previous peak in April amid heavy trading in Lloyds TSB.
Talk was that Lloyds, the UK's fifth largest lender, was in the sights of US giant Citigroup, which is known to be on the lookout for an acquisition in Europe.
ADVERTISEMENT
While this speculation is nothing new, yesterday's activity was more frenzied than usual, with one dealer describing trading in the stock as "extraordinary".
Sentiment was also helped by an upgrade from HSBC, which said that Lloyds would be the big beneficiary of a new savings boom. "We believe the household savings market has turned a corner, [and] profits here could double over the next five years. We highlight Lloyds TSB as a beneficiary," said Robin Down,analyst.
With 85m shares traded, Lloyds ended 3.9 per cent higher at 581p, its highest close since November 2002.
