Lloyds Banking Group PLC (LLOY)
Charts by TradingView
Pricing is indicative. Past performance is not a reliable indicator of future results. Log in to see latest markets data.
Why Trade Lloyd’s Banking Group Plc Shares?
Lloyd's Share price rallied nearly 30% over the last 14 months and has largely trended higher since bottoming at GBX23.58 in 2020. With February refreshing year-to-date highs of GBX64.82 (levels not seen since late 2019), chart studies reveal that upward momentum could continue until reaching resistance from GBX66.88, followed by resistance at GBX73.62.
With price action trading at highs and investors potentially seeking dip-buying opportunities, the banking giant’s latest earnings report (Q3 24 – nine months to 30 September 2024) announced stronger-than-expected earnings amid increased demand for borrowing on the back of lower interest rates. The bank experienced a pick-up in demand for unsecured loans and credit cards in Q3 24, with mortgages also gaining momentum, growing to £457 billion from £452 billion compared to a year earlier. The company also announced statutory profits before tax of £1.8 billion, down from £1.9 billion compared to the previous year, though marginally surpassing analysts’ estimates of £1.6 billion.
Charlie Nunn, Group Chief Executive of Lloyd’s, was optimistic regarding the Group’s robust financial performance in Q3 24. Nunn emphasised that recent performance reaffirmed 2024 guidance: ‘We are making good progress on our strategy and remain on track to deliver higher, more sustainable returns’.
What Influences the Price of LLOY?
The Stock market is influenced by several factors, some of which take precedence over others at certain times. While beyond the scope of this page to underline all elements that can move the price of LLOY, corporate earnings reports remain a significant driver of Share price volatility, either positively or negatively. Volatility generally increases if earnings exceed or underperform analysts’ expectations or forward guidance highlights an apparent change in the company’s projections.
The underlying economic picture determines consumer behaviour and, as you may expect, can affect the LLOY Stock price. For example, a growing economy with low unemployment, increasing productivity and stable prices would likely encourage consumption and investment in the financial sector. On the other hand, an economy in recession or stagnation may lead to higher unemployment and reduced consumer spending, consequently offering little incentive to invest.
News from financial media outlets, particularly those that broadcast live interviews with senior officials from Lloyd’s, can exert influence over market sentiment towards the Stock. For example, reports of new government initiatives supporting bank lending to small-to-medium businesses may be viewed as positive and increase demand for banking Stocks, including LLOY. Conversely, changes in government regulations can directly impact the company’s revenue stream and weigh on the Share price.
Given Lloyd’s business model, investors will also likely consider interest rates – changes in rates can significantly impact the bank’s review – along with liquidity and credit risks.
How To Trade Lloyd’s Banking Group Plc (LLOY) CFDs?
With Lloyd’s trading at multi-year peaks, prospective investors will closely monitor its price action. However, how an investor approaches this Stock depends on several elements. For those new to the Stock market, the FP Markets Academy can help you learn how to trade Share CFDs (Contracts for Differences) through in-depth articles and video guides.
CFDs represent a unique and cost-effective way of investing and hedging in the global financial markets. In addition to individual Stocks, such as LLOY, CFDs allow investors to trade Indices, Currencies, Bonds, Commodities, Digital Currencies, and more. At its core, a CFD is arranged through two parties agreeing to pay the difference between a trading position’s opening and closing prices, with no physical settlement permitted. A key feature of a CFD product is that it can be traded using leverage (margin). Investors can increase their position size by trading on margin beyond their available funds.
Start Trading Lloyds Banking Group PLC (LLOY) with a Market Leader Today
Lloyds Banking Group PLC (LLOY) Trading FAQ
Although Lloyd’s Share price rallied and achieved double digit growth this year and recently probed fresh highs, why and how you should invest in the LLOY Stock is trader-dependent. Some investors may derive signals from analyst recommendations, though it is prudent to conduct your due diligence before making any investment decisions. Astute investors follow a well-defined investment strategy, covering everything from entry/exit criteria and risk management to specific investment goals.
According to analysts polled by Reuters, 30% recommend a Buy, 65% a Hold, and 5% a Sell.
The current mean price target for LLOY is GBX66.29.
There are several advantages Share CFDs offer over traditional Shares. The first and most important is leverage. Purchasing physical Shares of Lloyd’s is frequently done through a cash account where no leverage is used: buying the Shares outright and becoming a partial owner. However, investing in Lloyd’s through Share CFDs allows you to trade an equivalent position size without putting up the entire investment value; you would only need to ‘deposit’ a fraction of the entire investment value, referred to as the ‘initial margin’.
Another key benefit of trading Share CFDs is that selling Shares is more straightforward. While this can be done with physical Shares, the method is more complex, involving borrowing company Shares from your brokerage (this usually entails a fee).
Share CFDs may also offer tax advantages, though this differs depending on the country you are trading from. For example, unlike conventional investing in UK Shares, trading UK-based Stock CFDs does not involve Stamp Duty (you typically do not pay Stamp Duty on physical Shares purchased outside the UK).
Leverage and margin are two components that investors must be aware of when trading in the CFD market.
When trading LLOY Share CFDs, investors use margin to increase their position size (hence leverage). For example, let’s assume Company XYZ trades at £100, and you want to own 100 company Shares. To become a partial owner, the full purchase cost for these Shares would be £10,000. However, trading 100 Shares of the same company using Share CFDs – assuming a 20% margin requirement – you could invest in an equivalent position size for £2,000.
Both internal and external risks influence Lloyd's Share price.
Internally, as reflected by the company’s earnings reports, its financial performance can have a marked impact on the Stock’s volatility. Therefore, quarterly, half-year and full-year reports must be factored into one’s risk management approach if trading around these times.
Externally, broader economic conditions and investor sentiment can elevate risks for LLOY. An outperforming (underperforming) economy, as well as positive (negative) market sentiment, can increase volatility for the Stock.
Factors to consider before opening a CFD position on LLOY will vary depending on the investment strategy employed. Common considerations include the company’s financial performance, industry trends, broader economic conditions, and market sentiment. While not an exhaustive list, professional investors work from a detailed Trading Plan. This should include entry and exit rules, trade management tactics and, importantly, an approach to managing risk.
Yes. CFD investors can short LLOY Shares on most trading platforms. On MetaTrader 5 (MT5), using its dedicated order window (F9), you can set specific trading parameters – such as trading volume and order type – and press the sell button to execute a short trade.
LLOY Share CFDs can be traded on MT5 and cTrader with FP Markets. Both platforms provide an easy-to-use interface, a full suite of trading tools, and flexible order execution features.
Swap Fees (Overnight Fees):
- Long positions: -8.5%
- Short positions: 2.5%
Commission Charges:
- £2 per side
- 0.10% commission per side
Earnings reports can significantly impact the price of LLOY; volatility generally increases exponentially if earnings results deviate from analysts’ expectations. The company’s forward guidance can also be market-sensitive, particularly if there is a language change. Another important observation to consider is market expectations/views leading up to earnings reports can also cause notable price movement. This is usually delivered through financial news outlets.
Start Trading
in minutes
