Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Switzerland
  4. Swiss Exchange
  5. Schweizerische Nationalbank
  6. News
  7. Summary
    SNBN   CH0001319265

SCHWEIZERISCHE NATIONALBANK

(SNBN)
  Report
SummaryQuotesChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Japanese and Swiss central bank shares soar in exuberant markets

03/02/2021 | 07:54am EDT

(Adds detail, comments and updates shares)

* BOJ shares up 71% in three sessions, SNB up 10% in two

* Traders see retail investors buying, no fundamental driver

* Cash-rich markets, thin volumes exacerbate moves

March 3 (Reuters) - The listed shares of the Japanese and Swiss central banks rose sharply this week, without any apparent reason, possibly reflecting high levels of investor exuberance in markets awash with cash.

Shares in the Bank of Japan (BOJ) hit their upper trading limit for a third session on Wednesday, taking gains over 4 sessions to 71%. Swiss National Bank (SNB) shares rose around 10% in two days.

While both central banks have made big gains on their stock and bond holdings this year, the unusual strength of the share rallies suggested retail investors were piling in.

The BOJ and the SNB set monetary policy in economies with the world's most popular funding currencies. Their peculiar ownership structures and low free float can exacerbate moves in their share prices.

Shareholders' rights in both banks are also severely limited, which should theoretically narrow their investment appeal.

"BOJ shares might have surged on its upbeat earnings but the bank's business objective is not to post profits, its purpose is to stabilise BOJ notes," Hiroyuki Kubota, a financial analyst, tweeted.

"...we have to be cautious that BOJ shares are attracting speculative money," Kubota added.

BOJ shares climbed to 47,000 yen ($440), their strongest since May 2018. The government owns more than half of the stock.

Veteran investors were reminded of the late 1980s when Japan was experiencing an asset-price bubble and BOJ shares became the target of speculative trading, rising 40-fold in four years.

SNB shares built on Monday's strong gains after the bank posted a net 2020 profit of 20.9 billion Swiss francs ($22.8 bln).

Traders in Zurich said retail investors were most likely driving the move but volumes remained thin.

The SNB declined to comment on its share price move.

UNORTHODOX

The last sharp rise in SNB shares was in April 2018, when they climbed from below 2,000 Swiss francs to a record 9,760 francs in less than a year. That surge came after blogs in Germany compared the SNB's shares to ultra-safe perpetual bonds.

Voting rights in SNB are subject to restrictions, with most of its shares held by the country's cantons and regional banks. The central bank has been listed since its foundation in 1907, and 40% of its shares are held by the public.

SNB-watchers said the legal limit on dividends, at 6% of the share capital, also conflicted with the stock gains.

"A change in the SNB's dividend policy is not in the cards, fundamentals stay the same," said UBS economist Alessandro Bee.

The pullback in the Japanese yen and Swiss franc against the U.S. dollar this year, however, bodes well for the central banks as the value of hundreds of billions of dollars' worth of overseas assets on their balance sheets rises.

Both central banks are known for their large portfolio holdings. The SNB's 914 billion francs of foreign investments are bigger than the Swiss economy.

The Swiss central bank is a significant investor in U.S. tech stocks such as Apple In and Tesla Inc, while the BOJ has huge holdings in the local share market, which recently scaled a 30-year high. ($1 = 106.8100 yen) ($1 = 0.9163 Swiss franc) (Reporting by Danilo Masoni in Milan, Fumiya Mizuno, Stanley White, Junko Fujita and Leika Kihara in Tokyo, John Revill in Zurich and Aaron Saldanha in Bengaluru; Editing by Vidya Ranganathan, Matthew Lewis and Jacqueline Wong)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. -0.51% 132.7787 Delayed Quote.0.61%
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) 0.21% 86.594 Delayed Quote.5.70%
EURO / JAPANESE YEN (EUR/JPY) -0.17% 129.83 Delayed Quote.3.28%
MIZUNO CORPORATION 2.30% 2132 End-of-day quote.6.07%
SCHWEIZERISCHE NATIONALBANK -2.21% 5300 Delayed Quote.15.81%
SOPHIRIS BIO, INC. -35.71% 0.18 End-of-day quote.0.00%
TESLA, INC. -1.45% 731.91 Delayed Quote.5.45%
UBS GROUP AG -0.57% 13.975 Delayed Quote.12.71%
All news about SCHWEIZERISCHE NATIONALBANK
04/18US Removes Currency Manipulator Label on Switzerland
MT
04/08Swiss March Foreign Currency Reserves Grow to $1 Trillion
MT
03/25SCHWEIZERISCHE NATIONALBANK  : Swiss National Bank Keeps Interest Rate at -0.75%
MT
03/22SCHWEIZERISCHE NATIONALBANK  : Swiss Current Account Surplus Slumps to $29 Billi..
MT
03/22SCHWEIZERISCHE NATIONALBANK  : Publication of the 2020 Annual Report
PU
03/08Swiss Franc Dips to 20-Month Low Against Euro After Currency Manipulation Lab..
MT
03/05SCHWEIZERISCHE NATIONALBANK  : Switzerland's Foreign Currency Reserves Edge Up t..
MT
03/02Japanese and Swiss central bank shares soar in exuberant markets
RE
03/02Japanese and Swiss central bank shares soar in exuberant markets
RE
03/01SCHWEIZERISCHE NATIONALBANK  : Swiss National Bank FY20 Profit Jumps to $106.5 B..
MT
More news
Financials
Sales 2020 21 249 M 23 155 M 23 155 M
Net income 2020 20 870 M 22 742 M 22 742 M
Net cash 2020 22 318 M 24 320 M 24 320 M
P/E ratio 2020 0,02x
Yield 2020 0,32%
Capitalization 542 M 590 M 591 M
EV / Sales 2019 -0,40x
EV / Sales 2020 -1,03x
Nbr of Employees 871
Free-Float 76,7%
Chart SCHWEIZERISCHE NATIONALBANK
Duration : Period :
Schweizerische Nationalbank Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SCHWEIZERISCHE NATIONALBANK
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Managers and Directors
NameTitle
Thomas Jakob Ulrich Jordan Chairman-Governing Board
Barbara Janom Steiner President-Bank Council
Philippe Landucci Director-Information Technology
Sébastien Kraenzlin Director-Banking Operations
Sabine Wey Assistant Director-Compliance
Sector and Competitors