WEEK 10 UPDATE
Welcome to the weekly update of the Ashburton Jersey School’s Investment Challenge.
What a week – there isn’t a dull day in markets. The past week has seen an increase in financial market volatility following the collapse of US-based Silicon Valley Bank, the largest failure of a financial institutions since 2008. This has raised concerns about potential contagion and a broader banking crisis. Worryingly, there has been turmoil surrounding Credit Suisse, whose shares and bonds collapsed on concerns that it may be next to fail. The bank has received a borrowing facility from the Swiss authorities to strengthen its liquidity and instil some stability and confidence in the sector.
Interestingly, only 6% of selected stocks within the competition are within the Financials Sector however the overall risk-off environment has affected all competition portfolios. In the midst of this crisis, The 5 Musketeers from Beaulieu Convent School have emerged as leaders for the first time. Their portfolio consists of well-known large cap companies, including Unilever and Apple, which have proven more resilient compared to general equity markets. It is also worth noting that DLS Geckos from De La Salle College have climbed steadily over the past few weeks and are now 4th. At the school level, Highlands remains top followed by Beaulieu and De La Salle respectively.
Given the volatility in the markets, this week has provided a broad range of returns at individual stock level, with the stock level returning +5.5% and the laggard -29.4%. As such, it will be interesting to see how this crisis unfolds and how it impacts leader board over the next week!
To find out more, go to: www.ashburtoninvestments.com/int/investmentchallenge