STOCKS NEWS EUROPE-B.Popolare, BMPS up after HSBC upgrade

Shares in Italian banks Banco Popolare (BAPO.MI) and Banca Monte dei Paschi di Siena (BMPS.MI) rise after HSBC upgrades both stocks to "neutral" from "underweight".

The two banks have underperformed in the last six weeks on perceptions that they are riskier than other Italian banks and the the HSBC research prompted investors to have another look at the two mid-size banks, a broker says.

"They have neglected stories and higher risk. Some people are trying to pick them up after huge underperformance," he says.

Another broker says the banks are supported by the HSBC note.

Banco Popolare is up 6.55 percent to 5.365 euros and BMPS gains 4.36 percent to 1.1490.

Reuters Messaging rm://nigel.tutt.reuters.com@reuters.net