Four Banks Dominate August Market in ‘Dash for Trash’
By Daniel at 26 August, 2009, 8:58 am
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By: Reuters
In late August’s quiet trading, four troubled financial companies have accounted for a big piece of total volume on the New York Stock Exchange, in what one analyst referred to as a “dash for trash.”
Citigroup, [C 4.75 -0.07 (-1.45%) ] Bank of America, [BAC 17.75 0.40 (+2.31%) ] Freddie Mac [FRE 2.06 0.01 (+0.49%) ] and Fannie Mae [FNM 1.86 0.16 (+9.41%) ] have dominated trading recently as each has more than doubled in price from 2009 lows.
On Monday and on Tuesday morning, the four accounted for more than 40 percent of composite volume on the NYSE.
Some attributed this to bets on hoped-for economic improvement and ongoing government support, but others said the volume was due to speculation in popular names with low share prices.
“We’ve been referring to the heavy volume on these as the ‘dash for trash,’” said Jon Najarian, the co-founder of Optionmonster.com in Chicago.
http://www.cnbc.com/id/32549609
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