Financial preferreds see biggest moves in trading; Citigroup, Duke Realty trade at high volume

By Andrea Heisinger

New York, Dec. 22 - The preferred stock market remained quiet on Thursday, but there was positive movement in some names that had taken hits earlier in the week.

"It's very quiet," a trader said early in the afternoon.

"The market's so oversold it just needed a little breather, and that's what we're seeing."

After the close, a trader said that "the market's up a touch" and that there was light volume overall.

The market was up by 38 basis points generically, or about 9 to 10 cents.

"It was a slow news day," the trader said. "It was a little busier, and the market's up, so that's a positive."

Bank of America Corp. saw its preferred shares "rallying a bit" on Thursday. On Wednesday, the name was marginally weaker on news of a settlement over discriminatory lending at its Countrywide unit.

The bank's preferreds were up 35 to 50 cents generically, the trader said.

The positive move may have been because members of the House of Representatives requested a longer comment period on the Volcker Rule, which aims to ban banks from making risky trades with their own funds, before it is enacted, he said.

Barclays Capital was also in the news following accusations that it ran up large losses in trading base metals. The company denied any abnormal trading.

As a result, a trader said that Barclays plc preferred shares were up about 70 cents.

Webster Financial Corp., a Waterbury, Conn.-based holding company for Webster Bank, filed a shelf registration for common and preferred stock, a source said.

A trader said he didn't see any increase in trading or movements in the company's outstanding preferreds.

"I'm not seeing them in the top trades, anyway," he said.

Citi, Duke among big trades

Preferred stock from Citigroup Inc. and Duke Realty Corp. were among the biggest movers and were the most active issues of the day, a trader said.

Duke Realty had the most active preferreds of the day: 1.3 million of its series M preferreds traded. They ended down 3 cents at $25.20.

Two Deutsche Bank AG preferreds were also changing hands at high volume. The series DUA preferreds had 870,000 shares trade and ended down 2 cents at $18.35. The series DKT preferreds from the bank had 520,000 shares trade and ended up 4 cents on the day at $23.74.

ING Groep NV's series IDG preferred stock saw 521,000 shares trade and was up 9 cents at $18.89.

A trader said that Citigroup's series H preferreds were the "big gainer of the day." There were 115,000 shares of the $100-par preferred stock traded, and they were up $3.91 on the day to end oat $83.36.

A trader said he didn't think Citi's move was because of the Volcker Rule news.

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