The postelection spike higher in Bank of America Corp.’s stock may still be less than half over, some analysts say, given the potential boost that President-elect Donald Trump’s policies could provide to the banking giant and others in the financial sector.
Shares of the moneycenter bank eased 0.1% Tuesday, erasing earlier gains of as much as 1.2%, but was still within range of of $20.86. With volume of over nearly 114 million shares, the stock was the most actively traded on major U.S. exchanges.
The stock rose 0.6% in premarket trade Wednesday.
B. of A.’s shares have rocketed 19% since the election, as investors expect the Republican sweep of the White House and Congress will relieve the regulatory pressure the banking sector has faced since the financial crisis. That compares with an 11% run-up in the SPDR Financial Select Sector exchange-traded fund and a 3% gain in the S&P 500 index over the same time.
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Analyst Steven Chubak at Instinet said...
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