Reuters: Hot Stocks: HSBC pushes FTSE to 5-1/2 year high after results

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HSBC pushes FTSE to 5-1/2 year high after results May 7th 2013, 11:14 Tue May 7, 2013 7:14am EDT * FTSE 100 rises 0.4 pct to 5-1/2 year peak * HSBC lifts index after results beat * G4S down 14 pct, offers good entry points - Panmure, Sanlam By Francesco Canepa LONDON, May 7 (Reuters) - A rally in banking shares propelled Britain's top share index to a 5-1/2 year high on Tuesday after Europe's largest lender HSBC reported estimate-beating results. Shares in HSBC rose 3.3 percent, approaching a three-year high in volume already 85 percent of its full-day average for the past 90 days, after the bank posted a near doubling in first quarter earnings. The stock led a surge in banking shares and added 16.2 points to the FTSE 100 index, which was up 27.8 points, or 0.4 percent, to 6,548.90 points, a level not seen since December 2007. The UK index mirrored strong gains for global equities, helped by European Central Bank President Mario Draghi's repeated offer to cut rates again if needed. Germany's Dax hit all-time highs on Tuesday. "The conditions are there for equities to keep going higher," Mike van Dulken, head of research at Accendo Markets, said. "If anything, the UK is trading a little bit behind the curve compared to the others, so we should have a little bit of catch-up to do." The FTSE gains were curbed by the world's largest security firm G4S, whose warning on profit margins sent its shares down as much as 14.5 percent to 261 pence. Panmure Gordon cut its target on the stock to 311 pence from 340 pence after the announcement but still rated it a "buy" based on its valuation of 11 times expected earnings for 2014. Mark Ward, head of execution trading at Sanlam Securities UK, also said Tuesday's fall presented a good entry point. (Reporting By Francesco Canepa; Editing by Ruth Pitchford) Link this Share this Digg this Email Reprints

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