Why Is Standard Chartered Soaring?
By Shuli Ren
The British pound is tumbling again this week on reports that Prime Minister Theresa May will announce Britain is seeking a “clean and hard Brexit” in a speech scheduled for Tuesday.
A hard Brexit is generally considered bad for London’s banks but buying Standard Chartered and HSBC, who earn a majority of their profits in Asia, can be a good hedge against the struggling currency.
In addition, Standard Chartered has been a laggard, thus a really cheap hedge. Whereas HSBC has risen close to 40% since Brexit, Standard Chartered has gained only 15.3% in the same period, in line with the Hang Seng Index‘s rise.
Standard Chartered may pleasantly surprise investors on February 24 when it releases earnings. This stock may also be added to the Hang Seng Index during the benchmark index’s March review, traders say.
Source: Barron's Asia
http://blogs.barrons.com/asiastocks/201 ... d-soaring/