Why Mitsubishi UFJ Financial Group Inc. (MUFG) Soared On Tuesday?

We recently published a list of 10 Stocks That Led Tuesday’s Charge. In this article, we are going to take a look at where Mitsubishi UFJ Financial Group Inc. (NYSE:MUFG) stands against other stocks that led Tuesday’s charge.

The stock market finished Tuesday’s trading in the red territory anew, erasing two consecutive days of gains, as investors repositioned their portfolios ahead of the Fed rate decision on Wednesday.

The Nasdaq registered the biggest drop among Wall Street’s main indices, declining 1.71 percent, followed by the S&P 500 with 1.07 percent, and the Dow Jones by 0.62 percent.

Despite the decline, ten companies showed off resilience during the session, finishing with modest gains. In this article, we have named the 10 top performers and detailed the reasons behind their gains.

To come up with the list, we only considered the stocks with a $2-billion market capitalization and $5 million in trading volume.

A smiling employee in front of a modern building surrounded by a vibrant cityscape.

Mitsubishi UFJ Financial Group Inc. (NYSE:MUFG)

Mitsubishi UFJ saw its share prices rally for a sixth consecutive day on Tuesday, adding 3.03 percent to finish at $3.03 apiece as investor sentiment was buoyed by its recent acquisition of 9.98 million shares in financial services firm JACCS.

In a statement last week, MUFG said the transaction would be done through a capital increase by a third-party allotment and would allow MUFG to gain a 40-percent voting right in JACCS after closing.

According to MUFG, the acquisition forms part of its mission to beef up its domestic retail customer base, in which it expects JACCS to play a key role.

In other news, MUFG announced plans to withdraw from an international banking framework supporting decarbonization efforts, joining several of its global banking counterparts.

The Net Zero Banking Alliance, convened by the United Nations, promotes investment and lending projects with the goal of reducing greenhouse gas emissions to net zero by 2050.

MUFG became the third bank to withdraw, following Sumitomo Mitsui Financial Group and Nomura Holdings.

Overall, MUFG ranks 10th on our list of stocks that led Tuesday’s charge. While we acknowledge the potential of MUFG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as MUFG but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.