HSBC (0005-HK) Remains Heavy
Ming Lam April 28, 2020 6:40 AM
Share Price is yet to fill back the huge Bearish Gap marked on April 1....
HSBC Holdings (0005-HK), a global banking group, reported that first-quarter profit before tax plunged 48% on year to $3.23 billion, blaming "higher expected credit losses and other credit impairment charges and lower revenue" due to the Covid-19 outbreak and weakening oil prices.
Estimated credit losses (ECL) of $3.0 billion was $2.4 billion higher than in the same period last year.
Looking into 2020, the Bank stated: "The impact and duration of the Covid-19 crisis will likely lead to higher ECL and put pressure on revenue due to lower customer activity levels and reduced global interest rates. (...) These factors are expected to lead to materially lower profitability in 2020, relative to 2019."
A review of its dividend policy will be made at or ahead of the release of full-year 2020 results, the Bank said.
The stock's Daily Chart does not look good, either.
Source: GAIN Capital, TradingView
Share Price is yet to fill back the huge Bearish Gap marked on April 1. And now the level of HK$43.95 (at the opening of the gap) is holding as the Key Resistance.
Being capped by the descending 20-day moving average, Share Price would seek Immediate Support at HK$37.60 (around its recent low).
Below HK$37.60, support would only be located at HK$34.50.
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