Market Insight

Market Roundup

UBS acquired Credit Suisse, and the Swiss financial institution FINMA completely wrote off the total SF$16bn of CS’s additional tier-one capital (AT1) bonds. It caused the market to worry that other financial institutions’ related risk exposures would record investment loss. HK market was dragged down by financial stocks. The HSI fell 499 points or 2.6% in half a day and then extended the decline. The HSI closed at 19,000 today, down 517 points or 2.7%. The HSTECH closed at 3,870, down 109 points or 2.8%. The HSCEI fell 146 points, or 2.2%, to 6,469. Market turnover was HK$129.44bn. Financial stocks performed poorly today. HSBC (0005), Standard Chartered (2888) and AIA (1299) fell 6.2%, 7.3% and 4.2% respectively. Prudential (2378) dropped the most, reaching 8.3%. Gold sector outperformed the market due to risk off. Zijin Mining (2899) rose 4.0%.

Source: KGI Asia Investment Strategy

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