Well I’m setting my target at 270-290 for year end, towards the bottom end most likely.
Because regardless of how anyone perceives the underlying fundamentals, the City knows HMG are prepared to unload their stake, indeed want to offload it, and aren’t too bothered about squeezing every last penny out of it. At the moment this kind of level seems acceptable so, unless there’s a significant change of heart (or HMG start playing a better game of poker?), given you know shares will be in the pipeline, why would you pay up?
Even the trackers and EFTs don’t really need to grab any yet because they know it won’t be going anywhere any time soon so can wait.
The only plus point is pretty long-term. HMG’s stake has and would always be a bit of an overhang here. At some point they were always going to have to unwind it and, until it is eliminated, you’d never have a proper bank share. The ideal solution of a £5 plus SP with an open offer to all members of the public never was very likely.
ITDYA wondering how many of the institutions who bought this tranche of shares have given political contributions to the Conservative party and/or have supported them in other ways?