Summary
LAST Thursday, Royal Bank of Scotland Group unveiled a 29% rise in pre-tax profits and its shares promptly soared in value by nearly 6%. Yesterday, HBOS, the fifth force in British banking created out of the 2001 merger of Bank of Scotland and the Halifax, precisely matched that percentage rise in pre-tax profits and its shares initially tumbled nearly 5%.
"It's not that HBOS disappointed but they weren't as bullish as the Royal," explained one anonymous market trader, widely reported on the wires. That comment says more about the prevailing psychology among the braces brigade than anything else.See the full content of this document
Extract
Concern About Complacency Peels Away Some of Gloss
However, the disparity in market reaction deserves closer scrutiny.
HBOS shares had risen in value by more than 5% in the three weeks running up to the release of its ...See the full content of this document
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