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TD Waterhouse share dealing finds HSBC rights issue attracts investors

06 March 2009 / by Rachael Stiles
Buyers of shares outnumbered sellers by almost 100 per cent at TD Waterhouse this week, as "investors continue to take advantage of volatile market conditions."

Angus Rigby, CEO at TD Waterhouse share dealing, said that the focus of buying remains on the hugely volatile banking sector, and, he said, "it's no surprise to see HSBC leap into the top ten buys" after its share price plunged 19 per cent on Monday following the announcement of its rights issue.

"The UK's biggest banking group is not a regular in our trading tables," he added, "but the news that the bank is turning to shareholders to raise a record £12.9bn has brought it onto our customers' radar screens."

HSBC suffered a $6.8billion loss in its US personal finance division last year, but investors are seeing "some upside in the longer term, despite the ongoing short term volatility in the sector," Mr Rigby said.

The bank has been reassured by its shareholders that they will raise at least 40 per cent of the rights issue.

"The size of the rights issue is bigger than expected but investors shouldn't be worried," said Nick Raynor, investment broker at The Share Centre share dealing. "HSBC is in a good position, compared to others in the banking sector, it made £6.5billion profits and extra cash will be used to boost the balance sheet."

Mr Raynor is advising investors to take up the right issue if they can afford to do so. "The City has fully underwritten and supported the rights issue so investors should be confident in joining them." he said.

This week, HSBC share dealing ranks at number five of TD Waterhouse share dealing's top ten retailer buys, with Lloyds Banking Group shares taking the number one spot, followed by Barclays share dealing.

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