“PacWest Leads Regional Bank Stock Rebound, Eases Week’s Wounds: Analysis”

In the US stock market on the 5th,Regional bank stocks, centered on Pacwest Bancorp, rebounded sharply. Some of the extreme sell-offs this week were widely viewed as overkill.

PacWest shares were up 88% at one point.Western Alliance Bancorp was up 43% on one occasion.There were concerns about business conditions in the banking sectorShares rose 6% after Charles Schwab said deposit outflows had slowed for the third month in a row. Zions Bancorp rose 19%, Comerica rose 17%, and other stocks that had been caught in the storm of regional bank selling also recovered on the day.

The KBW bank stock index, which fell 11% from the beginning of the week to the 4th, rose 4.8% on the day. The KBW regional bank stock index is up 5%.

Bill, founder of hedge fund management company Pershing SquareWhile some investors, such as Mr. Ackman, believe the pain is yet to come, others see the decline so far as overdone. “Investor views of banks’ capital and operating models are grim, and there is an irreconcilable tension between bad market sentiment and strong liquidity at regional banks,” Bloomberg Intelligence analyst Herman Chan said. Stated.

JPMorgan Chase & Co. analyst Stephen Alexopoulos said in a note Monday morning that the sell-off had backfired, raising his ratings on Western Alliance, Comerica and Zions to “overweight.” “With sentiment this bad, we think regional bank stocks are likely to see a positive revaluation over the medium term,” he explained.