Last month MM moved underweight the banks as we felt euphoria towards the sector had become too heated as the macro backdropped changed. At this stage we’re not considering piling back into the space but if we see UK facing VUK fall towards $3.30 it will move into our sights although we are likely to leave room to average another leg down towards $3 – remember VUK is historically an extremely volatile stock.
MM likes VUK ~$3.30
Add To Hit List
NB We also have our eyes on Bank of Queensland (BOQ) around $8.20 but the regional banks are holding up well at present.
