TOKYO — SoftBank Group Corp shares fell 5% in early trading on Wednesday as investors worried about the Japanese conglomerate's exposure to U.S. tech stocks, which slid for the third straight session.
The fall takes SoftBank's share decline to 12% since sources told Reuters and other media late last week that it made big bets on equity derivatives tied to tech firms.
Chief Executive Masayoshi Son said last month SoftBank would place cash from an asset sale programme in public stocks but the complex transactions have caused jitters among retail investors in a company already widely viewed as opaque, analysts say.
The group "needs to protect Masa's reputation by making sure it is not seen as a short-term trading giant, which would warrant a much bigger discount," Jefferies analyst Atul Goyal wrote in a note, referring to the gap between the value of its assets and its market valuation.
SoftBank's purchase of call options in addition to share buying, which gives access to a much higher amount of shares on paper, is seen by analysts as having exacerbated the market's run-up and subsequent sell-off.
SoftBank has previously declined to comment on the trades.
(Reporting by Sam Nussey; Editing by Muralikumar Anantharaman)
"share" - Google News
September 09, 2020 at 08:00AM
https://ift.tt/2Ff6k5c
SoftBank Share Slide 5% on US Tech Rout - The New York Times
"share" - Google News
https://ift.tt/2VXQsKd
https://ift.tt/3d2Wjnc
Bagikan Berita Ini
0 Response to "SoftBank Share Slide 5% on US Tech Rout - The New York Times"
Post a Comment