MARKET TALK: Selection Key In Banking Sector - Evolution

26th Jul 2010 08:46

0746 GMT [Dow Jones] The European bank stress tests should have been tougher, says Evolution Securities, and the whole exercise lacks credibility. "We don't see the Tests as a strong positive catalyst for equity investors, although we do expect them to help in the gradual normalisation process of funding markets," says Evolution. Says it becomes increasingly selective on the banking sector, as the average upside (22%) is now more limited. Says Santander (STD) remains its core conviction buy, with Lloyds Banking Group (LYG), BNP Paribas (BNP.FR), and Standard Chartered (STAN.LN) core buys. Replaces ING (INGA.AE) and Ageas (AGS.BT) with BBVA (BBV) and RBS (RBS.LN) as core buys. Says National Bank of Greece (NBG) and Banco Popolare (BP.MI) got the lowest results in its universe, and remain core sells. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 26, 2010 03:46 ET (07:46 GMT)