Is it good time to buy Citigroup Inc. (NYSE:C) Shares
Citigroup Inc. (NYSE:C) shares entered an oversold territory as now have RSI below 30, providing a sign to the investor to be ready to buy the best set ups. Wikipedia defines Relative Strength Index as a technical indicator used in the analysis of financial markets. A stock is deemed to be oversold once the RSI approaches the 30 level and therefore likely to become undervalued.
Citigroup Inc. (NYSE:C) has RSI(14) at 24.54. Recent news hit the market that a top Morgan Stanley (NYSE:MS) prime brokerage salesman for Singapore, Carl Davey, will be leaving the firm after 16 years to join Citigroup’s division providing services like clearing trades and lending money to hedge funds in Asia-Pacific.
David Murphy, who is a head of Citi’s prime finance unit for Asia-Pacific told Reuters, confirming the hire that Davey is set to head prime brokerage sales at Citi for Greater China region and is one out of the four hires by the Wall Street bank this quarter. Other appointments include David Stanbridge, former chief operating officer at Hong Kong-based hedge fund Kilometre Capital.
Davey was on gardening leave and Stella Jaeger, an executive director in the prime brokerage sales team based in Singapore, will replace him, according to a Morgan Stanley spokeswoman. The move is part of Citigroup’s arrangement to gain market share in the severely competitive industry which is led by Morgan Stanley, Credit Suisse Group AG (ADR) (NYSE:CS) and Goldman Sachs Group, Inc. (NYSE:GS) in the region.
Industry tracker AsiaHedge released a survey data in May which ranks Citi as No. 7 prime broker in the region with assets under management of nearly $6 billion and 72 mandates.
Separately, the leading U.S. bank to have regulators discard its capital plan this year have killed a board committee created during the debt woes to oversee the disposal of toxic and unwanted assets. New York-based Citigroup spokeswoman Shannon Bell has confirmed the move. There were nearly $200 billion of such assets that remained when directors broke up the Citi Holdings oversight panel last month under new Chairman Michael O’Neill.
The loss at Citi Holdings increased to $1.03 billion in the starting quarter as compared to $1.02 billion in the prior-year quarter. Credit Suisse Group AG analyst Moshe Orenbuch predicts the division’s 2012 losses will move up 10 percent from last year to $4.64 billion. Bloomberg compiled data showed that yearly profit at the parent company is expected to grow 9.9 percent to $12.2 billion.