Shares of the Swiss National Bank (SIX:SNBN) continue to rally, closing yesterday at CHF 9,400. It’s a crypto-style rise, because in mid-2017 the price was around CHF 2,000! However, despite large gains from foreign equity and foreign exchange holding, this does not equate to shareholder value, because the SNB pays out a large dividend.
Reasons for the rise are Switzerland’s safe haven status, the SNB’s current, negative interest rates and even speculation that the central bank will morph into a sovereign wealth fund similar to that in Norway. Investors can dream on, because SNB shareholder have no voting rights and no say in general matters. We believe the price spike is partly due to limited liquidity. Investors are scrambling to buy the few available shares.
Disclaimer: While every effort has been made to ensure that the datat quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein. This document does not constitute a recommendation o sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investment.
Although every investment involves some degree of risk, the risk of loss trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make informed decisions prior to investing. The material presented here in not to be construed as trading advice or strategy. Swissquote Bank makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change. Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments.