Standard Chartered is trading at 1253p, down 2%. This may be due to the fact that, ahead of its results next week, other British banks have disappointed investors.
With Lloyds and RBS concentrating on the UK market, HSBC has the most in common with Standard Chartered as both have strong relationships with the Far East. Standard Chartered generates over 70% of its profits in Asia, which is why the share price has broadly held its ground since the credit crunch.
The bank’s share price has dropped over 18% since its third-quarter results were released at the end of October. The stock came under pressure due to emerging market's currency panic at the end of January. The announcement in October already cited weakness in the Indian rupee and Indonesia’s rupiah as the reason for a drop in revenue of $200 million; the recent drop in emerging market currencies will impact the bank’s profits again.
The share price is in a downward trend, and the 50-day moving average has been acting as a resistance level. If the figures are poor on Wednesday we could go below the 1200p mark; on the upside, if we break 1305p (50-DMA), we could push towards the recent high of 1443p.