- Summary:
- Lloyds share price has dropped to the lowest level in 2012. Lloyds stock has underperformed other big UK banks like HSBC and Barclays.
Lloyds share price remains close to its 2012 lows as uncertainties on when the country will reopen remains. The shares are trading at £32.60, which is close to its YTD low of £27.72.
The number of coronavirus cases have continued to rise in the United Kingdom. According to data by Johns Hopkins, the UK has confirmed more than 89,000 while the number of deaths has risen to more than 11,000.
In a statement by Dominic Raab, the country’s interior minister, the country’s lockdown could continue for another full month. In the statement, he said that the country had a long way to go before the lockdown measures are relaxed.
In another statement by Patrick Vallance, the country’s chief scientific advisor, the number of coronavirus related deaths will continue to soar this week and flatten in the coming week. At the same time, the cabinet is also considering gradual measures to ease movements in the coming months.
The banking sector has been affected significantly by the disease. First, with many people not working, the banks have seen deposits and transactions decrease. Second, many companies are not operating, meaning that they are not asking for funds. Worse, many of them are likely not paying back their loans. The same is true with the real estate sector, where many tenants have stopped paying rent.
Lloyds Has Underperformed Other UK Banks
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Lloyds Share Price Technical Analysis
Looking at the three-hour chart, we see that Lloyds share price has struggled to pare back earlier losses. In the previous recovery attempt, the price hit a roadblock at the 23.6% Fibonacci Retracement level. The price has also formed a bearish inverted hammer pattern. This means that the share price could continue sliding and possibly test the important support level of £30.00.