Citigroup down as company considers Saudi expansion; Morgan Stanley leads mixed market

By James McCandless

San Antonio, May 4 – The preferred market saw an increase in activity to close out the week as the market ended largely up.

Citigroup Inc.’s preferreds were down and actively traded as the company considers a return to business in Saudi Arabia.

Barclays plc’s preference shares were also lower.

Energy Transfer Partners, LP’s recent issue ended the week as one of the most actively traded names in the preferred market.

Citigroup down

Citigroup’s 7.875% fixed-to-floating rate trust preferred securities retained its spot at the top of the preferred market for another day at the end of Friday with 680,000 shares changing hands. The company received increased attention on Wednesday when it signaled its interest in bringing its business back to Saudi Arabia.

There are also some traders who believe that the recent redemption announcements from Bank of America Corp. and General Electric Co. increase the likelihood of a similar announcement from Citigroup.

The securities fell 18 cents to close at $26.37.

Barclays off

Barclay’s 8.125% series 5 non-cumulative callable dollar preference shares, with about 320,000 shares trading hands, traded down to close the week.

The company is conducting a search for its next board chairman and faces pressure from an activist investor to open a seat on the board and increase profitability in its investment bank division.

The shares slid 34 cents to close at $25.79.

Energy Transfer up

Energy Transfer’s recently priced series C fixed-to-floating rate cumulative redeemable perpetual preferred units closed up with about 209,000 shares trading.

The 7.375% units priced after the market close on April 18.

The units rose 7 cents to close at $25.00.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index gained 0.10% at the end of the week’s trading, coming down from the 0.20% rise in early trading on Friday.

The iShares US Preferred Stock ETF gained 2 cents to close at $36.99.

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