Market starts positive, ends flat; JPMorgan lower on call news; MetLife regains ground

By Stephanie N. Rotondo

Phoenix, Aug. 2 - The preferred stock market was "slightly positive to flat with the little bump in Treasuries," a trader said at midday on Friday.

Still, overall activity was light aside from a stray issue or two, and the new issue calendar remained silent.

But by the time the closing bell rang, a market source said the market had fallen back, ending essentially flat on the day.

JPMorgan Chase & Co.'s 8.625% series J noncumulative preferreds (NYSE: JPMPI) were trading busily, however, in response to news out late Thursday regarding a redemption of all $1.8 billion of the preferred shares.

The preferreds were trading off 11 cents at midday to $24.98. At the close, the issue was off a dime at $24.99.

The call will take place Sept. 3.

Also busy were MetLife Inc.'s 6.5% series B noncumulative preferreds (NYSE: METPB). The preferreds managed to regain some of the ground lost in the previous session when the company held a conference call to discuss its quarterly results.

The paper was up 3 cents at $25.08.

The insurance company reported a 78% decline in profit during the second quarter.

RBS posts a profit

Royal Bank of Scotland Group plc's preferreds finished the day mostly down, aside from the most liquid issues.

The Edinburgh, Scotland-based bank reported a profit for the second quarter on Friday.

The 6.08% noncumulative guaranteed trust preferred securities (NYSE: RBSPG) put on a dime to close at $20.08, while the 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) earned 9 cents, closing at $23.04.

The day's biggest loser among the RBS issues on a percentage basis was the 5.9% noncumulative guaranteed trust preferred securities (NYSE: RBSPE), which lost 12 cents, or 0.6%, to end at $19.95.

For the quarter, the bank posted a profit of £220 million, compared to a loss of £429 million the year before.

RBS also announced that it had tapped Ross McEwan, head of retail operations, as its next chief executive officer. He will replace Stephen Hester, who announced his resignation earlier this year.

McEwan will take over in October.

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