MARKET TALK: HSBC +0.5%; Core Business In 1H Tipped Tepid

2nd Aug 2010 03:19

0219 GMT [Dow Jones] HSBC (0005.HK) +0.5% at HK$80.15, may stay near HK$80 before 1H results out after market close. Analysts expect net profit ranging from US$5.74 billion to US$9.38 billion, vs 1H09 net profit of US$3.21 billion, mainly driven by value gains of own debt, falling provisions, but core business performance may not be that strong. Taifook Securities says core revenue may remain depressed by de-leveraging in developed markets at time when income from treasury operations falls as investment positions mature amid low interest rate environment; adds shrinkage of group's balance sheet in U.S., Europe coupled with depressed net interest margins may lead to 5% on-year fall in net interest income during 1H10. HSBC volume modest at HK$230.5 million. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires August 01, 2010 22:19 ET (02:19 GMT)