E-commerce of stocks American Bank SVB was suspended on Friday, the Nasdaq stock market announced, pending a company announcement, in the middle of the agitation unleashed Wednesday after the announcement of a emergency capital raise, which ultimately failed. The entity, as reported by CNBC, would be looking for a buyer.
He Silicon Valley Bank (SVB) fell more than 60% in the stock on Thursday due to investor concern about the large customer drawdownswhich has since pushed the bank to raise capital to increase its liquidity sell a huge portfolio of financial stocks.
Shares of the bank plunged another 60% on Friday in electronic assets before the stock market opened, a drop that is weighing on the banking sector inside and outside the US.
The bank, mainly focused on start-ups, especially of the science and technology sector, was forced to do a forced sale of stocks Wednesday worth US$21,000 million, which meant losses of US$1.8 billion and resulted in a 60% drop in its shares.
In the US, several financial institutions were dragged down by the SVB’s move, such as Signature Bank, which fell 12% on Thursday and close to 10% in pre-market this Friday, and First Republic Bank, whose shares rallied depreciated by 17%. and 15%, respectively.
Although other big companies like JPMorgan Chase felt the brunt of SVB’s fall on Thursday with a 5% loss, this Friday, before the open, its shares lost only 0.28. Similarly, Goldman Sachs shares, which were down 2%, lost 0.29%.
Despite the stock market turmoil, some analysts have ensured that the fall of the Silicon Valley Bank is a particular issue that concerns only that institution.
“The current pressures facing SVB should not be seen as an extrapolation to other banks,” analysts Manan Gosalia and Betsy Graseck said in a note from Morgan Stanley, quoted by CNBC.
With information from EFE
Source: Clarin
