Mizuho Warns Over Russia-Ukraine Impact
Shares in Japan’s third-largest lender, Mizuho, are sitting on major support today following the release of Q1 earnings yesterday. The group noted a 56% drop in net-profits which fell back to 51.4 billion yen. The group cited major downside risks from Russia-Ukraine violence as the main driver behind the dip in performance. CEO Masahiro Kihara said during the earnings call: “We have solid results, the Russia-Ukraine conflict and other factors, uncertainties are increasing. We will keep a sense of high alert and make efforts for steady business operations.”
Looking, the annual profit forecast issued for the year ending March 2023 was below analyst estimates. Mizuho gave guidance of 540 billion for the year as a whole, short of the 563.6 billion yen the market was looking for. However, the figure still marks an uptick on the prior year with Mizuho noting that it expects bad loan costs to fall by more than half over the period.
Technical Views
Mizuho
Shares in Mizuho have formed a large descending triangle pattern over the correction lower from circa 168 highs. With trend line resistance dominating overhead, the stock is sitting on big support at the 1518.5 level, a break of which will open the way for a deeper move down towards the 1438 level. To the topside, 1606 remains the key resistance for bulls to break.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.