MARKET TALK: StanChart +3.3%; GS Adds To Conviction Buy

18th Jun 2010 05:18

0418 GMT [Dow Jones] Standard Chartered (2888.HK) +3.3% at HK$201.00 on top of 4.1% rally yesterday, which came on news it signed MOU on strategic cooperation with Agricultural Bank of China, while today's rally getting extra lift as Goldman Sachs adds stock to Asia Conviction Buy list with HK$241 target price. GS says recent updates strengthen house's view of continued double-digit revenue (10%), EPS (16%) 2009-12 CAGR despite fall in global trading profits, with little direct impact from European turmoil given StanChart's near-nil Euro exposure. Separately, BOCI says AgBank tie-up "makes strategic sense," would likely boost StanChart's growth in rural areas of China; house says in 2009, StanChart's China operations reported pre-tax profit jump of 200% to US$280 million, representing 5.4% of group's total pre-tax profit. Volume robust for second day in row at HK$206.9 million. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 18, 2010 00:18 ET (04:18 GMT)