Dallas, Texas 01/28/2014 (FINANCIALSTRENDS) – Lloyds Banking Group PLC (ADR) (NYSE:LYG), the stock of the London based holding company ,which manages financial institutions which aggregate to close to $95.5 billion in market cap from their operations worldwide has seen the value of its American Depository Receipts go down by a substantive 3.78% during trading on 27th January. To put yesterday’s sell off in perspective, investors need to note that the stock had shed close to 3.6 percent during trading, whole of last week and had posted a 2.88 percent gains in the past one month of trading.
The sell-off in the stock of this financial institution occurred on a day when the larger financials index in U.S registered a 0.88 percent decrease in market valuation as against a 0.26 percent dip in Dow Jones Index returns of the day. The slowdown in the financial sector in U.S was accompanied by a huge sell off across the major markets of Asia and Europe on fears of Fed Tapering gathering more momentum going forward. Few other uncertainties which seem to be troubling the stock are centred on the rumours that Fed would be changing the ground rules that govern the operations of foreign banks with respect to the minimum capital requirements which they need to bring in to their business.
It is appropriate to note here that in a survey conducted by PricewaterhouseCoopers and the Confederation of British Industry recently, Sixty-nine percent of financial services company executives felt very confident about the macroeconomic environment in U.K. The survey results were published by New York Times on 23rd January. These positive sentiments which are currently prevailing in the wider U.K financial players are expected to show up in increased profitability in the operations of these firms in the near term. Investors in the stock of Lloyds Banking Group PLC (ADR) (NYSE:LYG), would be hoping that the short term losses they have suffered can be overcome in the next few quarters.