Eurozone finance ministers expressed concerns that the U.S. government’s embrace of cryptocurrencies could pose risks to Europe's monetary sovereignty and financial stability . Their worries come after President Trump signed an executive order to create a strategic reserve of cryptocurrencies using tokens already owned by the U.S. government, signaling a shift in policy from the previous administration. Key Takeaways: Policy Shift in the U.S. : The U.S. administration’s new stance on cryptocurrencies , especially dollar-denominated stablecoins , has sparked concerns in Europe. Trump’s move to embrace cryptocurrencies as part of the U.S. financial system contrasts with past U.S. policies, raising alarms about the impact on European financial stability. Impact on Europe’s Monetary Sovereignty : Paschal Donohoe , Chairman of the Eurogroup, highlighted that such developments in the U.S. could directly affect ...
CIMB Securities, one of the few research houses covering Genetec, issued a warning on Friday about a potential 30% decline in the company’s earnings for the fiscal year ending June 30, 2025 (FY2025). This projection stems from delays in securing new orders from a key automotive manufacturer that has adopted a more cautious approach to capacity expansion.
As a result, CIMB Securities downgraded Genetec's stock from 'buy' to 'hold' and significantly lowered its target price from RM3.70 to RM1.60. The firm cited concerns over Genetec’s business outlook, highlighting uncertainties ahead of the U.S. presidential election and a moderating growth outlook in the global electric vehicle (EV) market as key factors.
Market speculation points to Tesla’s order deferments as a significant reason for this downgrade. There are also concerns that Genetec’s upcoming quarterly results, expected by the end of this month, could fall below consensus estimates.
Genetec is largely owned by institutional investors, with the Employees Provident Fund holding the largest stake at 9.33%. Other significant institutional shareholders include Principal Global Investors LLC, Hong Leong Asset Management Bhd, and Norges Bank Investment Management. Notably, Genetec's co-founder Aaron Chen Khai Voon reduced his stake in the company by 2.25% between May and July, bringing his ownership down to 7.39%.
The cautious stance taken by CIMB Securities reflects broader market concerns, as Genetec's shares have experienced significant sell-offs, recently plunging to their lowest level since July 2021.
Comments
Post a Comment