MARKET TALK: BoCom Down 1.1%; May Underperform More S/T

16th Jul 2010 04:00

0300 GMT [Dow Jones] Bank of Communications (3328.HK) down 1.1% at HK$8.41, worst-performing among 7 H-share banks, weighed by concerns glut of new shares from rights issue will depress share price performance in short term. BoCom completes HK portion of US$4.8 billion rights issue, new shares will become tradable staring Monday (July 19); if China Merchants Bank's (3968.HK) performance post-rights earlier is of any guidance, BoCom shares likely to lag peers in short term, would set up pair trade opportunities. Even if excluding shares taken up by 19% owner HSBC (0005.HK), DBS Vickers estimates supply of new shares would still be chunky at 769 million. BoCom volume so far 65.0 million shares. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 15, 2010 23:00 ET (03:00 GMT)