DJ MARKET TALK: Canadian Banks' Rally Won't Last
Tuesday, March 17, 2009 09:32:36 (GMT-04:00)
Provided by: Dow Jones
Edited by Paul Vigna
Of DOW JONES NEWSWIRES
(call: 201.938.5172; email: paul.vigna@dowjones.com)
MARKET TALK can be found using N/DJMT
9:32 (Dow Jones) The recent rally in Canadian bank shares won't last, Dundee Securities says. In fact, news is getting worse for Canadian financials, analyst says. First, nothing has changed: credit continues to deteriorate, securities losses remain, spread compression a threat and loan growth to turn negative, while wholesale revenue seen in 1Q unlikely to be repeated. As well, "we do not believe that the potential positives for the US banks will translate to the Canadian banks," Dundee says. Canadian financials unable to participate in US "bad bank" scheme and won't get relief from US mark-to-market changes. "We see only negative headlines for the banks," Dundee says. (MAG)
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