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Sale-off in leading shares from the banking sector. An investment opportunity or a reason to sell?

Sale-off in leading shares from the banking sector. An investment opportunity or a reason to sell?

Analysts were clear about the recent sell-off in leading shares from the banking sector. Given that these large international banking companies have a large volume of liquidity and have a significantly better risk management system than smaller competing companies, there is no reason to panic.

 

One of the main reasons for this sell-off is the move by the SVB financial group, which has set aside shares for sale with a total value of 1.75 billion USD, to support the group's financial situation. On Friday, March 10, the shares of this company fell by 60% in the main trading session. The total loss in this sector was 80 billion USD.

Competing firms such as Morgan Stanley (NYSE:MS) and JPMorgan (NYSE:JPM) also declined. On Thursday, JPMorgan closed for 130.34, down nearly 5% that day. On Friday, the decline was reversed, and JPM closed in green numbers, specifically + 3.64%

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JPMorgan´s five-year chart