The AGBA Group Holding Ltd (NASDAQ: AGBA) stock price soared 208.3% despite the lack of news from the Hong Kong-based financial services provider. The surge in AGBA stock could be directly attributed to a flood of buyers pushing its prices higher.
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The AGBA Group Holding rally mimics the rally seen in the Top Financial Group (NASDAQ: TOP) yesterday and today. Top Financial is a financial brokerage based in Hong Kong, which could explain the rally in AGBA stock today.
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AGBA Group Holding shares surged higher along with other Hong Kong financial stocks, driven by positive investor sentiment towards the sector despite the lack of fundamental news triggers to support higher moves.
The last significant announcements from AGBA Group include an SEC filing to sell 17.77 million shares, which could not support such a rally given the significant dilution of existing shareholders that would result from such a move.
The financial services company has also announced that it would buy back one million shares as part of a share buyback scheme after the board authorised the buyback of shares worth up to $10,000,000 during the program.
Ironically, the announcement was made in mid-April only for the company to unveil plans to sell up to 17.77 million new shares to investors to raise capital. Therefore, it is evident that the company’s financial position might not be as robust as expected.
Today’s rally results from retail investors jumping n any hong kong financial stocks that they can find to exploit the moves witnessed in similar stocks such as Top Financial. Over 2.3 million AGBA Group shares had changed hands at writing.
*This is not investment advice.
AGBA Group Holsing (AGBA) stock price.
The SGBA Group Holding stock price rallied 208.28% to trade at 45.21, from Thursday’s closing price of $1.69.
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