MARKET TALK: BoCom Tipped To Lag Peers Ahead; New Rights Shrs

16th Jul 2010 01:46

0046 GMT [Dow Jones] Bank of Communications (3328.HK) unlikely to react immediately to news it completes HK portion of US$4.8 billion rights issue, but starting next week shares possibly could enter period of underperformance (vs mainland banking peers) as glut of new shares from rights issue will become tradable July 19. 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, vs BoCom's 5-day average volume of 43 million shares. BoCom down 1.8% at HK$8.50 yesterday. China's 5th-largest lender offered new H-shares at HK$5.14 each. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 15, 2010 20:46 ET (00:46 GMT)