HSBC shares popped after the bank announced a management overhaul

LONDON — Shares in HSBC, Europe’s biggest bank, popped up almost 2% on Monday after the lender named Mark Tucker as the new group’s chairman.

He will take up the position when Douglas Flint steps down on October 1 this year.

The bank said in a statement that Tucker, who is the CEO and President of the insurer AIA, will also be tasked with finding a successor to replace HSBC CEO Stuart Gulliver by 2018.

Shares were up around 1.50% at the start of trading on Monday. 

Meanwhile, the FTSE made modest gains, up around 0.3% in early trades.

Meanwhile, the housebuilding sector is busy with talks between Bovis and Galliford Try.

“FTSE sentiment may be impacted by M&A in the housebuilders space as we hear of Bovis Home in talks with Galliford try on a possible merger, having rejected an approach from Redrow. Note banking behemoth HSBC replacing Chairman Flint with boss of AIA Mark Tucker, who used to head up Prudential,” Accendo Markets Head of Research Mike van Dulken wrote in an early morning email.

Here’s the HSBC chart:

And here’s the FTSE:


NOW WATCH: Despite the negative stigma, payday loans are not much different from credit cards

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.