HSBC Holdings (NYSE:HSBC) is the largest bank in Europe, and one of the 10 largest in the world. Shares of its NYSE listing have dropped 7.7% in 2019 as of close on September 3. There are very real concerns for HSBC and other British financial institutions ahead of the Brexit deadline on October 31.
The British pound fell to a stunning 34-year low on September 3 after British lawmakers won a vote to pursue the passage of a bipartisan bill that would prevent Prime Minister Boris Johnson from orchestrating a no-deal Brexit.
In response to the defeat, Johnson said he would table a motion today for a vote on holding a general election on October 17. This is the final date that European Union (EU) leaders can agree to a deal with the UK on its exit terms.
HSBC dismissed its chief executive in early August as it prepares to weather what will likely be a turbulent period. Investors are desperate for a resolution on the Brexit front, and it will be wise to watch the next weeks closely as the conflict within Britain’s ruling circles comes to a head. A positive outcome would be a coup for shareholders.
Shares do boast a favourable price-to-earnings ratio of 10.4 and a price-to-book of 0.7. The stock had an RSI of 31 as of close on September 3, putting it just outside of technically oversold territory.
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