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THE TIPSTER

Kathleen Brooks
IT MIGHT be worth buying a small tranche of UK banking stocks. For the first time in over a year they have all drifted lower, not because of bad debt issues or sub prime worries, as was the case during the credit crunch, but because of a retraction in global risk sentiment. Spreadex offers a spread of 60p-60.20p for Lloyds Banking Group, 651.90p-654p for HSBC and 322.4p-323.3p for Barclays.

Xstrata has dipped below £10 a share as mining stocks have been hit by the proposed Australian mining tax. This is the stock’s lowest level seen since February this year. With demand for raw materials still strong in the emerging world, this could prove to be a good buying opportunity. Capital Spreads quotes 987.7p-989.5p.

Societe Generale, the French bank, has been upgraded by S&P Equity Research from hold to buy. It said that although risks remain for the bank, for example its exposure to further domestic writedowns and its exposure to Greek debt, the current valuation – the stock has lost nearly 10 per cent in the past week – is overplaying these risks. Spreadex offers a spread of 3,798.9c-3,824.5c.