EGR Broking recommends selling shares in Britain's part-nationalised bankLloyds, which have surged some 45 percent since the start of 2013, inorder to bank profits on that rally before Lloyds' interim results at the startof next month, before then buying back the stock at a cheaper price.
Lloyds is up by 1.1 percent at 69.53 pence in early session trading, but EGRBroking managing director Kyri Kangellaris expects the stock will struggle tomake much more headway without first falling back.
"At this stage it is hard to see much more upside from the current pricewithout a correction. There may be an opportunity to sell at current levels andthen buy back at cheaper prices or buy other shares, and it is prudent to reduceexposure before August 1st, when the half-yearly results are announced, in caseof any nasty surprises," Kangellaris writes in a trading note.
The British government owns around 39 percent of Lloyds and 81 percent ofrival Royal Bank of Scotland after bailing out both companies during theglobal financial crisis.
Lloyds shares had hit a 2-1/2 year high earlier this month as overseasinvestors stepped up their interest in buying part of the bank, with mediareports suggesting some may want half the government's stake.
Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net
Lloyds (LLOY)