LONDON: Shares in HSBC led the FTSE 100 leaderboard for the second day running today as speculation that it might sell off its UK banking business added to excitement that it is looking at moving its headquarters away from London.
Investors leapt on both stories as clear signs that HSBC, under chief executive Stuart Gulliver, is willing to make radical moves to improve the bank’s performance after it was hit by a series of regulatory fines and the scandal over its Swiss private bank’s involvement in helping thousands of clients to avoid tax.
HSBC shares, which gained 2.9% on Friday, jumped as much as 4.5% at the London opening today. That followed a huge surge in Hong Kong, where local investors piled into the shares, with trading volumes massively above normal levels.
In London, the shares settled 17.2p, or another 2.7%, higher at 646.9p. That is their highest level since September last year.
Shares in all other major UK banks fell after rating agency Standard & Poor’s said that together they face a further £19 billion of fines and mis-selling charges over the next two years. That is on top of the £42 billion which the Big Four have already had to fork out.
