The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Lloyds Banking Group (Q3 update 25 October)
At just 9.1 times forward earnings versus 13.6 for its sector peers, Lloyds still looks attractive, helped by a steady rise in underlying earnings. One worry is still the further costs for payment protection insurance (PPI) claims, an issue that refuses to go away, while Lloyds’ increased presence in credit cards means the potential for higher bad loans. As ever, it is the dividend that makes Lloyds attractive, especially since the share price has essentially gone nowhere for months.
The shares faltered recently at 68p, but the bounce from 62p has been maintained, as the 50-day simple moving average (SMA) of 65.5p comes into play. Further gains would target 69p, and then 71p. A move below 65p would head towards the September low at 62p.