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PARIS, June 23 (Reuters) - Shares in major French luxury
goods companies Kering and Hermes fell on
Wednesday after HSBC downgraded its ratings on stocks in the
sector.
Kering and Hermes were down by around 1% by 0705 GMT.
HSBC cut its ratings on Kering, Richemont and
Burberry to "hold" from "buy", while it also downgraded
Hermes to "reduce" from "hold".
"We expect the luxury sector to report exceptionally strong
top-line growth for Q2 and expanded margins for H1, but the
market might take a break as it really could be as good as it
gets," wrote HSBC in a note.
(Reporting by Sudip Kar-Gupta; editing by Jason Neely)
