MARKET TALK: HSBC May Rise; Passes EU Bank Stress Test

26th Jul 2010 01:39

0039 GMT [Dow Jones] HSBC (0005.HK) may rise if tracking its ADRs, which ended +1.0% at equivalent of HK$77.68, vs local close of HK$76.90 (ended +1.3% Friday), after it passed Europe-wide bank stress test. This suggests improvement in its balance sheet, but news slightly optimistic while sharp rally looks unlikely, says Mark To, head of research at Wing Fung Financial. Tips HSBC could first test its 100-day moving average (HK$77.11) and gradually test its 250-day moving average (HK$82.87) if trading sentiment remains positive. While Standard Chartered (2888.HK) wasn't tested, a person familiar with situation told Dow Jones Newswires that StanChart constantly performs its own evaluations; Wing Fung's To expects StanChart may have to stay for a while at around HK$210-HK$215 to build a solid platform for further upside ahead. StanChart ended +2.8% at HK$215.40 Friday. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 25, 2010 20:39 ET (00:39 GMT)