UBS Shares Highly Sought After After Dissolution of Guarantee Contract
Published: Friday, Aug 11th 2023, 08:40
Mise à jour le : Vendredi, 13 octobre 2023, 14:12
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The UBS stocks were highly sought after on Friday after the Swiss government voluntarily dissolved all guarantees related to the CS takeover. Analysts welcomed the move, but wished for more details. Just before 9.30am, the shares rose by 4.3% to 20.24 francs, reaching a daily high of over 5%. This puts them at the top of the Swiss leading index SMI, and the average daily volume has already been exceeded. The year's high of 20.85 francs, reached in early March just before the CS takeover, is now within reach. Bank Vontobel sees this news as positive for sentiment, and believes it will help to calm the political debate around the potential risks of the new UBS, which had been intensifying over the past two months. The voluntary termination of the guarantees follows the positive news of the Archegos agreement at the end of July. Although there is still a long way to go for the new bank, the management is pushing forward with its plan. More clarity is expected with the quarterly results at the end of the month. Mirabaud and JPMorgan also see the voluntary termination of the guarantees as a positive signal, but are looking for more details. They believe the upcoming quarterly results will be key in providing transparency on the merger, meeting the requirements of the government and preserving value for shareholders. The ZKB also expressed positivity, noting that the announcement was earlier than expected. This shows that the risk profile of the CS and the new UBS is better than initially feared by the market.nnnnnnnn
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