Shares in FPB Bank shot up 23 per cent to $2.40 yesterday amid rumours that its parent First Pacific would put the banking firm on sale after the Philippine-backed group sold Pacific Link Communications.
An old rumour resurfaced, suggesting that First Pacific was planning to buy all the shares in San Miguel Group in the Philippines, thus the need to sell assets and raise cash. A First Pacific spokesman said the company did not comment on rumours.
Among other bank shares to gain yesterday, Dao Heng Bank surged 10.78 per cent to $22.60 amid rumours that the company would soon replace Hopewell and become one of the Hang Seng Index constituent stocks.
Dah Sing Financial edged up 8.91 per cent to $19.55 on rumours that the company, which controls the 44-branch Dah Sing Bank, would post positive results despite the volatile interest rate environment.
The rumours also said institutional investors, which had dumped the stock earlier, were returning to buy the stock back.