HSBC dividend resumption hopes propel sharesBusiness | 25 Nov 2020 4:05 pm
HSBC Holdings shares surged at one point by 8 percent today on optimism that Europe’s biggest lender may soon resume paying dividends as a turnaround gathers speed, Bloomberg reports.
At the close today the shares gained by 6.54 percent at HK$42.35, making it the best performer in the benchmark Hang Seng Index. They have still declined 30 percent so far this year.
“This is mainly due to the change in market expectation, as HSBC’s operating conditions aren’t as bad as expected previously,” said Richard Cao, analyst at Guotai Junan International. “Its valuation is also attractive so a catch-up rally is possible.”
Goldman Sachs Group Inc. on Tuesday advised investors to buy the London-based lender, which beat analyst expectations in the third quarter and signaled it may resume limited dividend payments for this year. British regulators have signaled a willingness to soften their stance on payouts, people familiar have said.