Barclays stakes shine on Australian banks before earnings season
CITY BEAT: Michael Bennet | October 21, 2009 Article from: The Australian
BARCLAYS has added to increasing market optimism on Australian banks, becoming a substantial holder in three of the nation's biggest lenders before they report results later this month.
The London-headquartered financial group on Monday popped up on the registers of ANZ and National Australia Bank with a 5.06 per cent and 5.29 per stake, respectively.
Barclays then yesterday became a major player at Westpac with 5.82 per cent interest which it picked up in the last four months at the discounted average price of $22.3175. Westpac yesterday closed at $26.48.
Analysts are also backing the major banks.
UBS co-head of financial services research Chris Williams says he has an overweight recommendation on Australian banks and expects core earnings to grow 23 per cent in 2009.
He says industry consolidation is creating a “generational opportunity” for Australia’s big banks, with UBS most bullish on NAB out of the big four.
Barclays also showed some good timing on property by grabbing 5.01 per cent of property group Stockland on Monday before the head of GPT Group yesterday declared Australia’s property sector past the bottom.
NAB Price at posting:
$30.72 Sentiment: None Disclosure: Held
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