Nomura shares plummeted by 16% on the Tokyo Stock Exchange this morning after the Japanese financial entity announced million-dollar losses for its US subsidiary. Specifically, the bank reported “an event” related to the transactions of a subsidiary in the United States that could cause a “significant loss.”
The transactions amount to approximately 2 billion dollars, according to the entity that clarifies that the final amount will depend “on the reversal of transactions and fluctuations in market prices” while analyzing “the extent of the possible loss and the impact on its financial results.”
Despite the losses, Nomura assures that the incident will not cause problems in its financial strength and that it will report everything “once the impact of the potential loss has been determined.”
Nomura is listed on the New York Stock Exchange as ADR. You can see its price evolution In the following graph:
Get our Weekly Commitment of Traders Reports: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Source: Admirals MetaTrader 5. Nomura ADR CFD weekly chart. Data range: from November 29, 2015, to March 29, 2021. Prepared on March 29, 2021, at 9.30 a.m. CET. Keep in mind that past returns do not guarantee future returns.
In the graph, we can see a first lateral period that ends in January 2018 when the stock fell and hit the ground in June 2019. From there it goes back but the price falls again due to the coronavirus pandemic (yellow rectangle). From there it goes back to the current moment when it is close to breaking the resistance it left in January 2018.
With the Admiral Markets Trade.MT5 account, you can trade Contracts for Differences (CFDs) of Nomura and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Carolina Caro (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.