ABB Ltd (ADR) (NYSE: ABB)
ABB Ltd was off to what seemed like an incredibly strong day in the market today. When the trading session opened for the day, the stock was trading well into the green. Throughout the first half hour or so, it traded relatively flat, holding onto impressive pre-market gains. However, minutes ago, the stock started to spike downward in a big way on allegations. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for ahead.
What We’re Seeing From ABB
As mentioned above, ABB Ltd was having what looked like a great trading session early on. When the opening bell rang, the stock was trading up in a big way. Throughout the first half hour or so, we saw relatively flat movement as the stock held onto pre-market gains. However, minutes ago, the stock started to take a dive. At the moment (10:11), ABB is trading at $22.72 per share after a loss of $0.04 per share or 0.18% thus far today.
Why The Stock Is Falling
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on ABB. As soon as they did, the CNA Finance team started digging to see what was causing the movement. It didn’t take long to dig up the news, and the news definitely wasn’t good. It seems as though the declines are being caused by an investigation.
Minutes ago, reports started to break that the SFO has commenced an investigation into ABB Ltd’s activities. In particular, the investigation focuses on the United Kingdom subsidiaries, their officers, employees and agents. Unfortunately, they have been suspected of offenses that include bribery and corruption. This is part of an ongoing investigation into the activities of Unaoil.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ABB. In particular, we’re interested in learning more about this investigation, and how the investigation turns out. Nontheless, we’ll be watching the news closely and bringing it to you as it breaks!
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