The Banking Sector is weak, with Barclays (L:BARC), Lloyds (L:LLOY) and HSBC all near the 2015 lows. But Santander (MC:SAN) share price made a sharp move from its low of 352 last week, could this share be ready to buy before any pre-festive rally?
Santander’s share price seems to have been pulled back by the sentiment within the Banking sector as a whole. Whilst the outlook may not be rosy for banks, the news flow from Santander has been mainly positive in terms of revenue and profit.
Since Moody’s outlook rating was revised to positive in June, they reported a 24% jump in ordinary profit in July, and recently in October they reported a 17% increase over the same period last time. Yet investors are still not seeing value at the current price.
Whilst a Christmas fed rally is not entirely certain, it remains a fact that in 3 of last 5 years BNC share price has seen a decent gain moving towards the holiday period. Even last year, there was a small gain, until the post New Year sell off which resulted in around 90 points loss during the first few weeks of the year.
At the release of the positive numbers in October, Chief executive officer Nathan Bostock said: “I am pleased to report solid results for the first nine months of the year, with good momentum in profitability underpinned by strong flows, significantly lower provisions and growth in net interest income.”
It was also shown that Santander added 960,000 new customers in the nine months ended 30th September to its 123 current accounts.
Things may not be as dismal as the price is tending to show. Technical points of note show that Relative Strength has been steadily climbing above 50 since the October rise, and with a possible support area around 350, there could be some good opportunities to get in for some low risk trades on any weakness to support.
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