MARKET TALK: HSBC Likely Rangebound Before 1H Results

2nd Aug 2010 02:35

0135 GMT [Dow Jones] HSBC (0005.HK) likely rangebound around HK$80, ahead of widely-eyed 1H10 results. Analysts expect net profit ranging from US$5.74 billion to US$9.38 billion, vs 1H09 net profit of US$3.21 billion. Still, significant portion of earnings growth likely to come from value gains of own debt (Credit Suisse tips US$3 billion), which non-cash item. Falling provisions another catalyst for 1H earnings surge; UBS notes in U.S. 1Q10 impairments halved on-year to US$2.2 billion, while CS expects continued improvement in U.S. personal financial services impairment, given stabilising U.S. housing prices, declining unemployment, HSBC has been running down portfolio since 2006. HSBC ends Friday down 1.0% at HK$79.75. 1H results expected after market close. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires August 01, 2010 21:35 ET (01:35 GMT)