Huntington bank’s stock falls 2.8% after it announces exit from Indian market
Huntington Bank has announced it will exit India from the Indian market, a move that will impact the entire trading market.
The company said on Wednesday that it would exit the Indian stock market, which was trading at a low of $1.26, after it said it would invest $5.5 billion to expand its business in India.
It will now be able to take advantage of a higher cash flow from the sale of its stake in KPMG India.
The bank also said it was setting up a joint venture in India, which will help expand its presence in the country.
The firm said that the move was part of the global expansion plans it is making to diversify its operations.
Huntington Bank’s stock dropped by about 2.2% on Wednesday to $4.90 a share.
The stock has fallen since November last year and has been a drag on earnings and profit margins in the last six months.
The Indian stock index is down about 2% from its peak on January 20, 2017, when Huntington was founded in 1891.
The bank’s shares have fallen about 2-3% from their peak in 2016, when the company was founded, when it was valued at $1 billion.
The share price of the firm dropped further in 2018, when analysts forecasted the company’s earnings to drop by more than a third.
The latest drop comes as Indian stock markets are expected to recover after the end of the government’s austerity measures.