One to watch

Published on Friday 30 July 2010 22:50

HSBC is one of the world's largest financial institutions. It kicks off the UK bank reporting season on Monday.

However people may view the behaviour of certain bankers around the world in recent times, a mixed economy requires a vibrant banking community and, as the sound and fury of the past 18 months or so die down – as they will – responsible banks are likely to flourish.

HSBC was long-regarded as the doyen of the international banking sector. Run by dedicated Presbyterian Scots out of Hong Kong, it established an enviable universe of operations across the Far East and beyond. The company grew both organically and by acquisition – one of the notable UK purchases being the Midland Bank. Unfortunately more recently, and some would regard inexplicably, HSBC became embroiled in the sub-prime loan market through the purchase of Households in the US in 2003. The consequences were expensive, both financially and reputationally. However, that is now history and the company's first quarter results could provide further reassurance.

l The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this stock for your portfolio.

HSBC

646p -10.3p

Scotsman says BUY

BROKER SNAPS

BT

142.2p -2.6p

Broker says SELL

FOLLOWING telecoms giant BT's first quarter results, Execution Noble has reiterated its "sell" rating. Analyst Andrew Hogley said: "We remain concerned about the potential threat from mobile broadband substitution and present a downside scenario which would cut 20p from our 130p fair value."

Vertu Motors

27.5p unch

Broker says BUY

NUMIS has upgraded its rating on Vertu Motors from "hold" to "buy" following a series of showroom acquisitions. The broker said: "Vertu's share price, presumably impacted by the acquisition-related 'downgrades', has fallen from 37p last time we wrote. We leave our target price unchanged (at 39p]."