Last Updated on March 10, 2023 by Bitfinsider
Shares of SVB Financial Group, also known as Silicon Valley Bank, dropped for a second day on Friday and weighed on the entire banking sector again due to concerns that additional banks will incur heavy losses on their bond portfolios. This led to an increase in the number of investors who sold their SVB Financial Group shares.
During Friday’s premarket dealing, the company’s stock dropped by another 61%.
In anticipation of forthcoming news, the premarket selling of the company’s shares was stopped.
After a drop of 8% on Thursday, the SPDR S&P Regional Banking ETF was down another 2% in premarket dealing on Friday. After suffering a loss of 4% on Thursday, the Financial Select SPDR Fund dropped by 0.3% on Friday. In premarket dealing, Signature Bank, which is well-known for catering to the cryptocurrency industry, saw a decline of 9%, following a decline of 12% on Thursday. After falling by 17% on Thursday, First Republic Bank’s stock dropped by 19% on Friday.
After falling by 5% on Thursday, major banks were mostly unchanged in early trading on Friday, with JPMorgan Chase posting a 0.2% gain.
“Current pressures facing SIVB are highly idiosyncratic and should not be viewed as a read-across to other banks,” analysts Manan Gosalia and Betsy Graseck with Morgan Stanley wrote in a note on Friday. “Current pressures facing SIVB are highly idiosyncratic and should not be viewed as a read-across to other banks.”
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