Morgan Stanley shares fall for a second straight session on Thursday, bank to add 80 jobs in Paris after Britain leaves the EU

March 23, 2018 8:47 am

According to a person with knowledge of the matter, Morgan Stanley intends to boost its headcount in Paris by 80, after Britain parts ways with the European Union. Additionally, up to 200 staff will be transferred to the bank’s hub in Frankfurt.

Morgan Stanley shares closed lower for a second consecutive trading session on Thursday. It has also been the steepest daily loss since February 8th. The stock went down 4.32% ($2.47) to $54.64, after touching an intraday low at $54.51, or a price level not seen since March 5th ($54.28).

In the week ended on March 18th the shares of the financial holding company lost 1.98% of their market value compared to a week ago, which marked the second drop out of five weeks.

The stock has neutralized earlier advance and is now down 2.46% so far during the current month following a 0.94% drop in February. The latter has been the first monthly loss since August 2017.

For the entire past year, Morgan Stanley shares gained 24.19% following another 32.82% surge in 2016.

The bank’s move to transfer some personnel to Frankfurt, its post-Brexit headquarters for EU operations, appears to be in line with decisions made by other financial institutions, which have selected one European city as their main regional subsidiary within the EU and after that basing some of their other business activities in several countries.

Reuters reported that, earlier in March, UBS had revealed plans to stick to a decentralized approach, with personnel being relocated mostly to Frankfurt as well as other major centers where their customers are located.

Almost 120 people are already employed by Morgan Stanley in Paris.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Morgan Stanley’s stock price, have a median target of $60.50, with a high estimate of $72.00 and a low estimate of $40.00. The median estimate is a 10.72% surge compared to the closing price of $54.64 on March 22nd.

The same media also reported that 16 out of 29 surveyed investment analysts had rated Morgan Stanley’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Morgan Stanley stock are presented as follows:

R1 – $54.84
R2 – $55.03
R3 (Range Resistance – Sell) – $55.23
R4 (Long Breakout) – $55.81
R5 (Breakout Target 1) – $56.50
R6 (Breakout Target 2) – $56.78

S1 – $54.44
S2 – $54.25
S3 (Range Support – Buy) – $54.05
S4 (Short Breakout) – $53.47
S5 (Breakout Target 1) – $52.78
S6 (Breakout Target 2) – $52.50

By using the traditional method of calculation, the weekly levels of importance for Morgan Stanley (MS) are presented as follows:

Central Pivot Point – $57.90
R1 – $58.99
R2 – $60.48
R3 – $61.57
R4 – $62.67

S1 – $56.41
S2 – $55.32
S3 – $53.83
S4 – $52.35

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