MARKET TALK: HSBC +0.1%; Europe Outlook Unclear -BoCom Intl

6th Jul 2010 08:08

0708 GMT [Dow Jones] HSBC (0005.HK) +0.1% at HK$71.25, modest rebound after falling 5.5% over past 5 sessions on concerns over European exposure; still lags HSI's 0.5% gain. BoCom International notes about half of HSBC's assets in Europe, only quarter of total assets in Asia Pacific; house keeps stock at Neutral, cuts target price to HK$81.58 from HK$90.62 considering unclear outlook in Europe. Adds, bank's recent purchase of Indian retail, commercial businesses of Royal Bank of Scotland (RBS) shows HSBC accelerating expansion in emerging markets such as China, India. Says deal will increase number of directly-owned branches in India to 81, boost presence in India. "HSBC is keen on grasping acquisition opportunities during business cycle fluctuations. The acquisition will help HSBC achieve leap-frog development in Indian market." ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 06, 2010 03:08 ET (07:08 GMT)