Short sellers continue to raise bets against Metro Bank
With pressure mounting on the UK challenger bank, short sellers continue to raise their bets against Metro Bank.
Metro Bank shares have fallen dramatically since the start of the year, with the lender’s balance sheet under increased pressure as a result of the Covid-19 outbreak, prompting short sellers to raise bets against the UK challenger bank.
ENA Investment Capital, GSA Capital Partners and Odey Asset Management all upped their short positions against the stock last week, with 8.04% of Metro Bank shares held by short sellers, according to data compiled by the UK Financial Conduct Authority.
Shares in Metro Bank are down 56% year-to-date, with the stock underperforming the broader market with the FTSE 250 down 28% over the same period.
UK bank stocks under pressure amid Covid-19 crisis
Metro Bank isn’t the only UK lender struggling as a result of the economic fallout from the Covid-19 crisis.
Its larger rivals like Barclays, Lloydsand Royal Bank of Scotland (RBS) have all seen significant downward pressure applied to their respective share prices in 2020, with the three lenders down more than 46% year-to-date.
The latter of the three saw its first quarter (Q1) profit halved due to the lender allocating £802 million to cover a spike in bad loans as a result of the Covid-19 crisis.
However, it is worth noting that despite RBS reporting a significant decline in quarterly profit, the lender did manage to beat analysts’ forecasts due to a 9% rise in income from its investment banking unit NatWest Markets due to increased market volatility.
How much does it cost to buy UK shares with IG?
There are three ways to ‘buy’ UK shares with IG: trading CFDs or buying physical shares. The cost will depend on which method you choose. The table below illustrates how the costs to get exposure to £10,000 of Lloyds stock, which is equivalent to 16,000 shares (quoted at 62.5p a share).
Remember, CFDs are derivatives, which come with higher risk and reward than investing.
Cost to get exposure to Lloyds stock
| CFD trading | Share trading | |
| Action | Buy 16,000 share CFDs | Buy 16,000 shares |
| Capital required to open | £2000 | £10,000 |
| Total fees | £20.88 | £16 |
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
