The HSBC share price has held well as investors focus on the potential initial public offering of the company’s Indonesia division. The stock rose to a high of 525p, which was the highest it has been since April 22 this year. It has risen by more than 11% from its lowest point this year. Other banking stocks like Barclays and Lloyds have also crawled back in the past few days.
HSBC has been in a spotlight this week as the company decided to suspend a leading official for expressing contrarian views on climate-related risks. In an event organized by the Financial Times, Stuart Kirk argued that the current climate risks were being overblown. His supporters believe that he was just expressing his thoughts, which is an important part of free speech.
Meanwhile, as Indonesian stocks surge, the company is said to be considering taking its branch there public. According to Bloomberg, plans for this move are at an advanced stage although it is yet to file its IPO documents with the local regulator.
This decision is part of the company’s strategy to focus more on Asia, which is expected to do better than western countries like the US and UK. Indonesia, in particular, has been doing well and is expected to rise by over 5% this year. If it lists, it will be one of the biggest listings this year after GoTo.
The four-hour chart shows that the HSBC share price has been in a strong bullish trend in the past few days. This recovery accelerated after the stock moved above the key resistance level at 505p, which was the highest level on May 17th. The stock has risen above the 25-day and 50-day moving averages. It is also steady above the ascending trendline shown in purple. It has also risen above the key resistance at 522p.
The stock will likely keep rising as bulls target the key resistance level at 541p, which was the highest level this year. A drop below the support at 515p will invalidate the bearish view.
This post was last modified on %s = human-readable time difference 07:20