OSL GROUP (00863) fell more than 5% in Hong Kong trading. As of the time of writing, the stock was down 4.53% to HK$17.48, with a turnover of HK$15.93 million. The decline comes amid a broader risk-off sentiment after former US President Donald Trump announced plans to impose new tariffs on eight European countries, pressuring risk assets and sending the cryptocurrency market into a sharp downturn. On the evening of January 19th, cryptocurrencies collectively experienced a significant drop, with Bitcoin's price falling over 3% at one point, breaking below the $92,000 mark and interrupting the rebound momentum seen since the start of the year. DBS released a research report stating that as a cryptocurrency exchange, OSL Group's revenue and stock performance are correlated with Bitcoin's price, and with Bitcoin declining 24% in the fourth quarter, the bank expects this to negatively impact OSL's trading volume and revenue. Consequently, DBS has lowered its full-year revenue forecast for OSL Group to approximately HK$560 million. However, the bank remains optimistic about OSL Group's growth prospects for the 2026 fiscal year, as the integration of its acquisition, Banxa, is progressing slightly ahead of schedule and is estimated to contribute around HK$110 million in revenue by 2026. Simultaneously, the company's payment business continues to grow, and the launch of new trading products is seen as a positive development.
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