Bank of America lifts up in Pre Market Stocks
Bank of America (BAC) has capitalized on investors’ growing appetite for financial stocks, raising $13.5 billion through the sale of common stock, half of that haul raised on Tuesday, the business press report this morning.
In Pre Market stocks Bank of America ($11.90, +$0.65, 5.78%) shares jumped 5.78%. This can be good opening for Bank of America, while yesterday deal pushed shares of Bank of America down 3.4%, to $10.88, in after-hours trading. Bank of America shares had fallen 4.1% during the regular session.
The Los Angeles Times points out the deal has created a hefty dilution of value for BofA shareholders as the share price has fallen 21 percent since the fire sale began, well underperforming the sector.
Bank of America added 3.4 percent to $11.63. The biggest U.S. bank by assets raised money in a stock offering after regulators determined it needed more cash to weather an extended recession. Bank of America issued 1.25 billion shares after the stock surged 258 percent since March 6.
Standard & Poor’s 500 Indexfutures expiring in June added 0.3 percent to 909.10 at 7:28 a.m. in New York. Dow Jones Industrial Average futures gained 0.2 percent to 8,469. The MSCI Asia Pacific Index advanced 0.6 percent, while Europe’s Dow Jones Stoxx 600 Index lost 0.4 percent.
