ING, RBS start positive, end mostly weaker; profit taking pressures RBC; Ally ends mixed

By Stephanie N. Rotondo

Portland, Ore., July 5 - The first trading session back from the Fourth of July holiday was a quiet one for the preferred stock market, traders reported Tuesday.

"It was a dead day," a trader said. "Everyone is still in vacay mode."

Though the day was subdued, there remained "more positive buying," the trader said.

Another trader said the day "started off as a mildly positive up day," before things went kind of flat.

ING Groep NV and Royal Bank of Scotland Group Plc, for example, "started to rally and then rolled over," the trader said. Both names ended the day mostly weaker.

Royal Bank of Canada preferreds were also seen "trading off." A trader opined that profit-taking was causing softness.

Meanwhile, Ally Financial Inc. continued to actively trade, though the two series of preferreds closed the session mixed. A trader said the 8.125% series B shares "look interesting."

ING, RBS gyrate

ING Groep and Royal Bank of Scotland preferreds followed the market trend of the day, posting gains early on before giving some back.

ING's perpetual hybrids (NYSE: IGK), however, were the most actively traded ING issue and actually traded higher, earning 19 cents to close at $25.96. Another issue of perpetual hybrid capital securities (NYSE: ISF) traded down 3 cents to $21.98, after hitting a high of $22.13 before midday.

RBS' series G preferreds overtook Ally Financial's series two series of preferreds as the day's most active issue. About 1.3 million of the preferreds changed hands, closing 33 cents lower at $14.42.

The Gs traded as high as $14.75 during the session.

Profit takers pressure RBC

A trader said Royal Bank of Canada preferreds were "trading off" due "largely to profit taking."

The series B noncumulative first preferreds (Toronto: RYPB) dipped 5 Canadian cents to C$24.81. The series Gs (Toronto: RYPG) fell 4 cents to C$24.31.

The series AJ preferreds (Toronto:RYPJ) inched up a penny to C$26.27, but not before hitting a low of C$26.20.

The series AR first preferreds (Toronto: RYPR) meantime ended unchanged at C$27.20. The preferreds traded down to C$27.13 before coming back up.

Ally ends mixed

Ally Financial's 8.5% series A preferreds traded down 11 cents to $25.73, on volume of about 957,000 shares, making the issue the day's third most traded security.

The Bs meanwhile took the second most active spot, with some 1.28 million shares turning over. The preferreds closed steady at $25.34.

Of the Bs, a trader said the paper "looks interesting" at current levels.

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