HSBC shares plunge 24%
10-03-2009
HSBC shares have tumbled 24 percent to close at HK$33 - their lowest level since 1995. The stock price has nearly halved since the bank annnounced plans a week ago to raise capital through a rights issue at HK$28 a share. The stock, down sharply throughout the session, tumbled dramatically in late trading as an institutional investor reportedly sought to unload nearly 12-million shares. It ended HK$10-50 lower. Investment manager at DBS Vickers, Peter Lai, said the losses reflected broader scepticism about the bank's prospects amid the global downturn. "People are pessimistic about the outlook for HSBC. The US banking sector is in big trouble and HSBC is deeply involved in the US market," Mr Lai said. The plunge dragged down the Hang Seng Index, which closed 4.8 percent lower. HSBC also dropped sharply in early London trading.
