What is going on at Standard Chartered? Since last week’s disappointing interim results, the share price of the emerging markets banking group has risen from 774.5p to 860p last night, a gain of 11%.
Aside from the fact that hedge funds have been closing their short positions, dealers reckon the most likely explanation for the strong run is that investors view Standard as a way to cash in on economic recovery.
Sector specialists say there could be another reason: a predator is stalking Standard. Given its strong position in the fast growing Indian market and foothold in China, the bank is an attractive target for the likes of Barclays and Citigroup, which would both like to beef up in those areas.
