MARKET TALK: HSBC May Test HK$80; Watered-Down Basel Rules

28th Jul 2010 01:23

0023 GMT [Dow Jones] HSBC (0005.HK) may rise for 7th straight session, testing psychological HK$80 (last at this level end-April), tracking gains in ADRs, London-traded shares, on sector rally due to news Basel 3 proposals watered down. Next key event for HSBC 1H10 results due August 2, on which investors will be judging quality of bank's earnings recovery; Credit Suisse forecasts 1H10 profit before tax +714% on half, +155% on year at US$12.1 billion, driven mainly by fair value gains on own debt of US$3 billion, falling provisions. HSBC ends yesterday +1.7% at HK$78.85. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 27, 2010 20:23 ET (00:23 GMT)