Market Insight

Half Day 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 opened 165 points lower and then expanded its decline. It fell 499 points or 2.6% in mid-day to 19,019; the HSCEI fell 148 points, or 2.2%, to 6,467 points; the HSETCH fell 114 points, or 2.9%, to 3,864 points. The market's mid-day turnover totaled HK$65.2bn. Financial stocks performed poorly today. HSBC (0005), Standard Chartered (2888) and AIA (1299) fell 5.9%, 5% and 3.3% respectively. Prudential (2378) dropped the most, reaching 7.5%. Gold sector outperformed the market due to risk off. Zijin Mining (2899) rose 3.8%.

Source: KGI Asia Investment Strategy

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