MARKET TALK: HSBC +0.8% Pre-Mkt; Passes EU Bank Stress Test

26th Jul 2010 02:49

0149 GMT [Dow Jones] HSBC (0005.HK) +0.8% at HK$77.50 at pre-market, extending past 4 sessions' 4.0% rise, supported by news it passed Europe-wide bank stress test. But any further rise likely capped after its recent rally, while stress test result doesn't appear completely surprising with European debt crisis easing. Upcoming focus will be 1H10 results (expected Aug. 2), with Credit Suisse tipping profit before tax +155% on-year at US$12.1 billion, mainly driven by fair value gains on own debt of US$3 billion and falling provisions. "Interest rate hike expectations being pushed back continue to be a drag on margins, and Balance Sheet Management revenue." Keeps stock at Outperform, HK$97 target. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 25, 2010 21:49 ET (01:49 GMT)