Large block trades involved more than $10bln of stocks sold by Goldman

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Large block trades involved more than $10bln of stocks sold by Goldman

March 27 (Reuters) – Large block trades on Friday causing a
wave of selling in a clutch of companies were driven by sales of
more than $10 billion executed by Goldman Sachs Group Inc
, media reported on Saturday.

Shares in ViacomCBS and Discovery tumbled around 27% each on
Friday, while U.S.-listed shares of China based Baidu and
Tencent Music plunged during the week, dropping as much as 33.5%
and 48.5%, respectively, from Tuesday’s closing levels.

Eric Handler at MKM Partners, who covers Discovery, on
Friday said that large blocks of shares in both Viacom and
Discovery companies were put in the market on Friday, likely
exacerbating the declines.

An email to clients seen by Bloomberg News said Goldman sold
$6.6 billion worth of shares of Baidu Inc, Tencent
Music Entertainment Group and Vipshop Holdings Ltd
, before the U.S. market opened on Friday, the report on
Saturday said. https://bloom.bg/3lYOrZm

Following this, Goldman sold $3.9 billion worth of shares in
ViacomCBS Inc, Discovery Inc, Farfetch Ltd
, iQIYI Inc and GSX Techedu Inc,
according to the report.

A source familiar with the matter said on Saturday that
Goldman was involved in the large block trades.

Goldman Sachs did not immediately respond to a Reuters
request for comment.

The Financial Times reported that Morgan Stanley sold $4
billion worth of shares earlier in the day, followed by another
$4 billion in the afternoon.

Morgan Stanley declined to comment.

The Financial Times reported that Goldman told
counterparties that the sales were prompted by a “forced
deleveraging”, citing people with knowledge of the matter.

CNBC reported https://www.cnbc.com/2021/03/27/archegos-capital-forced-position-liquidation-contributes-to-viacom-discovery-plunge.html
that the selling pressure was due to liqudation of positions by
family office Archegos Capital Management, citing a source with
direct knowledge of the situation. A person at Archegos who
answered the phone declined to comment.
(Reporting by Juby Babu in Bengaluru; Additional reporting by
Ken Li, Megan Davies and Sinead Carew; Editing by Diane Craft
and Daniel Wallis)