Investment group

Saudi Industrial Investment Group sees profit jump 1,135% in 2021

RIYADH: Japan’s SoftBank, backed by Saudi Arabia’s Public Investment Fund, was among the biggest victims of a sell-off in tech stocks in Asia on Thursday, Bloomberg reported.

Investors turned to billionaire Masayoshi Son’s company as the phase of central bank policy tightening unfolded.

The stock fell 9.8% in Tokyo, the most since March 2020, as Nasdaq futures fell and shares of the company’s biggest investment, Alibaba Group, fell in Hong Kong.

Hawkish signals from Federal Reserve Chairman Jerome Powell have led investors to bet against tech companies, which have fueled much of the recent growth in global markets: something SoftBank has been betting on with its Vision Funds. speculative technology bets.

“SoftBank is the poster child of a highly leveraged company in the face of the current asset bubbles,” wrote Amir Anvarzadeh, senior strategist at Asymmetric Advisors Pte, who recommends selling the stock short.

“This latest decline in its value could add further pressure to its funding structure.”

Shares of SoftBank traded at their lowest level since May 2020, with reports that a planned sale of its Arm chip unit to Nvidia was likely to fall through, also weighing on the stock.

Analysts have pointed out that failure of the deal could lead to a credit downgrade.