MILWAUKEE, Wisc. ( TheStreet) -- It might seem hard for a mortgage company to lose more money in the fourth quarter than many Street analysts expect and still end the day up by close to 10%, but MGIC Investment (MGT) engineered that feat on Tuesday.
Shares of MGIC Investments ended Tuesday with a gain of 9.6%, or 58 cents to $6.64, and almost three times the mortgage company's normal level of trading -- 11.6 million shares traded versus an average daily level of close to 3.9 million shares traded.
The fourth quarter earnings report from MGIC Investment, the largest U.S. mortgage insurer, led to a rally among similar mortgage companies.
Radian Group (RDN) was up 4%, and had daily trading volume 2 million share above its normal level.Genworth Financial (GNW), which is a diversified financial company, but whose mortgage business has been the key performance laggard, ended the day up by 1.3%, with 17.5 million shares traded, versus an average daily trading volume of just under 11 million shares. GenWorth hit a 52-week high during Tuesday's trading session. PMI Group (PMI), one of MGIC Investment's competitors, was up 5%, too. At the same time as the mortgage rally, the financial and insurance sectors were both down on Tuesday.
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