HKBN (01310) rose more than 5% during the trading session, as of the time of writing, it increased by 3.94%, to 2.64 Hong Kong dollars, with a turnover of 5.4327 million Hong Kong dollars.
According to the news from the Wisdom Finance app, HKBN (01310) rose more than 5% during the trading session, as of the time of writing, it increased by 3.94%, to 2.64 Hong Kong dollars, with a turnover of 5.4327 million Hong Kong dollars.
On the news front, UBS released a research report stating that it is expected that the Fed will begin a rate cut cycle in mid-September. The UBS Hong Kong economic team predicts that the three-month HIBOR in Hong Kong in 2025 will be 130 basis points lower than this year. It also believes that the low interest rate environment is beneficial to the telecommunications industry's fundamentals, reducing corporate debt burden and driving inflow of risk assets, and is more likely to cause re-rating due to pressure on dividend yield.
The bank stated that based on the telecom company's current level of debt at about 50%, it believes that the interest cost will decrease, thereby improving the dividend prospects. The bank raised the target price for HKBN from 3.16 Hong Kong dollars to 3.3 Hong Kong dollars, and upgraded the rating from "neutral" to "buy".