J.P. Morgan shares close lower on Friday, bank’s Hong Kong branch fined over anti-money laundering rules violation

According to a statement by the Hong Kong Monetary Authority (HKMA) last week, the regulator has imposed a fine of HKD 12.5 million (or $1.596 million) on the Hong Kong branch of J.P. Morgan Chase & Co (JPM) for violating anti-money laundering and counter-terrorist financing rules.

J.P. Morgan Chase shares closed lower for the eighth time in the past twelve trading sessions in New York on Friday. The stock edged down 0.22% ($0.21) to $96.83, after touching an intraday high at $98.27, or a price level not seen since December 21st ($98.43).

Shares of J.P. Morgan Chase & Co have retreated 9.45% so far in 2018 compared with a 7.03% drop for the benchmark index, S&P 500 (SPX).

In 2017, J.P. Morgan’s stock surged 23.93%, thus, it outperformed the S&P 500, which registered a 19.42% return.

J.P. Morgan’s Hong Kong branch was also ordered by the regulator to appoint an independent external adviser who will have to prepare a report into whether the remedial measures taken by the US bank were sufficient to address the “contraventions and other deficiencies” discovered.

“We look forward to working with the independent adviser who will be appointed to review our current internal controls in Hong Kong to verify that the legacy issues have been addressed by the remedial actions already undertaken by JPMorgan,” the Wall Street bank said in an emailed statement, cited by Reuters.

The HKMA’s decision comes after a probe by the regulatory authority concluded that between April 2012 and February 2014 J.P. Morgan Hong Kong had violated six provisions of the anti-money laundering and counter-terrorist financing rules.

The Hong Kong Monetary Authority stated that J.P. Morgan Hong Kong did not manage to ”establish and maintain effective procedures” in order to identify and handle wire transfers and to comply with regulation on customer due diligence and ”continuous monitoring” of business relationships.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding J.P. Morgan Chase & Co’s stock price, have a median target of $121.00, with a high estimate of $138.00 and a low estimate of $104.00. The median estimate represents a 24.96% upside compared to the closing price of $96.83 on December 28th.

The same media also reported that 14 out of 30 surveyed investment analysts had rated J.P. Morgan Chase & Co’s stock as “Buy”, while other 14 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for J.P. Morgan Chase & Co (JPM) are presented as follows:

Central Pivot Point – $95.40
R1 – $99.70
R2 – $102.56
R3 – $106.86
R4 – $111.15

S1 – $92.54
S2 – $88.24
S3 – $85.38
S4 – $82.51