CalmStock daily readFUTUMon, Oct 19 close1 min read
Futu’s opening bounce fades, leaving its recent pullback intact
Futu finished nearly unchanged, holding up better than related brokerage stocks but surrendering its early gain. The session did little to repair a 6% decline over the past five trading days.
Futu closed Monday up just 0.02% after opening 1.4% above its previous close. It finished near the session low as the early buying faded, leaving the recent pullback intact. Trading volume was ordinary: 923,056 shares, compared with a typical 1.1 million.
The flat close nevertheless showed some resilience within a weak brokerage group. The median return among seven related brokerage stocks was negative 1.6% on Monday, with five declining. Over the past five trading days, Futu has fallen 6%, compared with a 7.4% decline for the group’s median return and a 1.5% drop in the S&P 500. That places Futu’s recent weakness within a broader brokerage pullback, with both the stock and its peers lagging the broad market.
On the business side, a press release made public during the session said Moomoo had launched pre-market and post-close trading sessions for U.S.-listed options on its platform. [1] The additional sessions give clients more opportunities to trade. Futu earns mainly from trading fees and interest on investment-related lending and cash deposits; if clients use the longer hours to place additional trades, the expansion could increase its trading-fee revenue.