We wrote about dropping prices of HSBC shares a few weeks ago, and when the share price went up some people said we never mentioned the fact. The reasoning was that the increase was only temporary. Shares in Europe’s biggest lender, HSBC, hit their lowest point in a decade in Hong Kong on Friday (February 20th, 2009) amid negative speculation about the bank’s forthcoming earnings and capital reserves.
We are about two weeks away from HSBC’s annual earnings report. HSBC Canada already reported reduced earnings. HSBC dropped 2.3 per cent to HK$53.80 (£4.95) per share, the lowest price since October 1998.
“The current economic down cycle is far from over, so the market is still trying to find a bottom,” said Peter Lai of DBS Vickers.
As I write this article HSBC Holdings PLC is down again. The 52-week range saw a low of 33.48 and a high of 88.15 if I need to drive the point home. Something clearly needs to happen.
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