MARKET TALK: HSBC +0.6%; HK$80 As N/T Cap - First Shanghai

26th Jul 2010 05:08

0408 GMT [Dow Jones] HSBC (0005.HK) +0.6% at HK$77.35, adding to 4.0% rise over past 4 sessions, supported by news it passed Europe-wide bank stress test. Linus Yip at First Shanghai says recent gains in HSBC may have partly factored in stress test result. Expects psychological HK$80 as strong cap near-term. "I think investors will remain concerned and more cautious in the runup to its upcoming results for the first half of the year (release expected Aug. 2)." Separately, Standard Chartered (2888.HK) wasn't tested, but a person familiar with situation told Dow Jones Newswires that StanChart constantly performs its own evaluations. First Shanghai's Yip says, as StanChart has a relatively higher ratio of business from Asia and other emerging markets, expects stock may continue to gain support ahead. Stock +1.1% at HK$217.80; year-to-date high of HK$219.20 as near-term cap. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 26, 2010 00:08 ET (04:08 GMT)