The financial stocks logging the biggest gains in the week were led by a financial services company that serves Central Asia and a global electronic trading platform. Meanwhile, a Chinese financial services platform and a Colombian bank saw the biggest declines.
Overall, financial stocks were weaker than the broader market as bond yields surged. The week was marked by mortgage rates hitting their highest level in 22 years, according to Bankrate. The Financial Select Sector SPDR S&P ETF (NYSEARCA:XLF) fell 2.8% during the week, modestly outpacing the S&P 500’s 2.1% drop.
Also during the week, credit card issuers reported delinquency rates climbed to prepandemic levels in July.
Lufax Holdings (NYSE:LU) was the biggest decliner for the week ended Aug. 18, sliding 14%.
Grupo Aval Acciones y Valores (NYSE:AVAL), the Bogota, Colombia-based bank, dropped 11% after lackluster Q2 earnings sparked concerns about asset quality trends. J.P. Morgan downgraded the stock to Neutral.
Mortgage lender Rocket Companies (NYSE:RKT) declined 10%.
Argentinian bank Banco Macro (NYSE:BMA) dipped 9.8%.
Freedom Holding (NASDAQ:FRHC), a Kazakhstan financial services company, topped the financial gainers, rising 16%, even after it was the subject of a new short report from Hindenburg Research. Freedom said Hindenburg’s claims are without merit.
MarketAxess Holdings (NASDAQ:MKTX) gained 6.0% for the week.
Progressive (NYSE:PGR), which reported July results, increased 4.8%. It said net premiums earned increased 20% Y/Y to $5.65B.
BRP Group (NASDAQ:BRP), which markets and sells insurance, rose 3.9%.
And financial services network StoneX (NASDAQ:SNEX) rose 2.2% for the week.