Macquarie rebounds from massive fall
Jacob Saulwick, Colin Kruger and Eric Johnston
September 19, 2008
Macquarie Group shares came roaring back from the abyss this morning, jumping almost one-third in value, after their worst ever performance the previous day.
Debate continues to rage about the long-term viability of its investment banking model. Huge volumes of Macquarie shares have been traded, as the stock was targeted aggressively by hedge funds, selling it down over the past week.
But today buyers leapt back in as global markets recovered, on news the US government is considering a more comprehensive solution to the financial market turmoil, which spurred a major rally on Wall Street last night.
Macquarie gained as much as 31.3%, or $8.15, to $34.20 at the start of trade. Yesterday, in its biggest one-day loss, the stock fell 23% to $26.05, its lowest close since May 2003.
The bank, with the corporate regulator alongside, said it was campaigning against fear and innuendo rather than valid concerns. The insinuation is that hedge funds have been driving Macquarie into the ground in order to profit from short-selling the stock.