MARKET TALK: Bank Of Communications Flat Before Ex-Rights Fri

10th Jun 2010 03:52

0252 GMT [Dow Jones] Today last chance to Buy Bank of Communications (3328.HK) shares ahead of ex-dividend Friday; stock resilient, flat at HK$8.40 on modest volume. China's 5th largest lender will issue 1.5 rights shares for every 10 shares at HK$5.14 each. HSBC (0005.HK) undertaken to subscribe to full entitlement, may take opportunity to raise stake in lender back to maximum 19.9% allowed by taking up potential unsubscribed issues, although "the chance is remote because of the steep discount on the rights shares," says Taifook Research; has Buy call with HK$10.20 target (2.2X end-FY10 P/B) on BoCom. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 09, 2010 22:52 ET (02:52 GMT)