The decline in Credit Suisse shares, which has been going on for about two weeks, came to an end on Friday for now. Shares of the major bank rose significantly during the transaction and are close to the 3 francs they fell below on Monday.
At the close of trading, the bank’s shares rose 9.3 percent to CHF 2,950.
Previously, CS shares had lost thirteen consecutive trading days and had lost a third of their value. The rights to buy new shares from the capital increase, which has been traded with great fluctuations recently, may increase by 167 percent on Friday to 12.9 centimetres. The market as a whole, as measured by SMI, is currently down 0.4 percent.
CS stock sales are exaggerated
In trading, continued sales in CS shares are now described as exaggerated. According to one market watcher, “speculators” were also floundering about subscription rights. Recently, short sellers have also bet against stocks of the big bank. Another trader says that after the stock fell so quickly, some market participants were probably trying some kind of “bottom-fishing.”
Subscription rights sales also contributed to the decline since the start of the week. It seems that many shareholders chose to sell the rights rather than invest more money in the new CS shares. In contrast, the bearish pull in alimony rights is putting pressure on the stock again, it said in trading. Price development is expected to calm down again as subscription rights trading ends on December 6, so it is hoped.
Capital outflows stalled, according to CS President
Meanwhile, CS Chairman Axel Lehmann told Bloomberg on Friday that the massive capital outflows from October have now stalled or even reversed, at least partially. Also, only a few customers would leave the bank entirely. Accordingly, this client told the news agency there is hope of regaining their funds.
Those in charge of CS “are honest about putting asset exits in perspective and looking as positive as possible,” said Stephan Sola of Sola Capital. It is quite possible that recovery will take a little longer. However, he still does not find it appropriate to buy the shares. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
