HSBC (LON: HSBA) share price is performing very well ahead of its earnings. The British multinational financial giant is set to release its financial results on August 1, 2023. The positive price action suggests that the investors are expecting strong results for Q2.
The benchmark FTSE 100 index surged above 7,700 points level on Friday. This has been the highest level for the benchmark index since May 2023. The rally can be attributed to the rising oil price, which has increased the prices of energy stocks. HSBC shares are also experiencing bullish sentiment in the market. The shares were up 1.49% till press time.
The biggest factor behind the ongoing rally in HSBC stock is the 3.4 million share repurchase that occurred on Thursday. With this, the bank had completed its $2 billion buyback program. According to the details, 1,864,548 shares were bought on the London stock exchange at an average of 642p.
A similar buyback occurred at the Hong Kong bourse, where 1,501,200 shares were acquired for HK$64.92. The fact that the purchase was made near the yearly peak is quite significant. At the time of writing, HSBC share price is trading at its highest level since August 2019.
A look at the following LON: HSBA chart shows that the bulls are constantly gaining momentum. After a major pullback in March 2023, the stock has fully recovered and is now targeting its January 2018 peak of 800p. This would be almost a 23% price increase from the current level.
However, this bullish HSBC share price forecast is only likely to be met if the next week’s financial results come out strong. The shares also need to gain strength above 650p, which is also a huge resistance level. Only then could we expect a bullish move toward 800p.
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This post was last modified on Jul 28, 2023, 11:54 BST 11:54