Quake Hits Pig Supply

by 5m Editor
14 May 2008, at 11:22am

CHINA - The earthquake in Sichuan province on Monday raised some concern in the mainland stock market, but is not expected to have too much of an impact on individual companies' performances and investor sentiments, according to official sources in China.

Although the full extent of the damage is still unclear, analysts said they expect earnings of companies in infrastructure, transportation, electricity and tourism industries in Sichuan and Chongqing to be hit.

Zhang Fan at Changjiang Securities said: "The hog supply from southern Sichuan, a major pig rearing base, is expected to be hampered, mounting more inflationary pressure.

"That will probably prompt further tightening monetary measures, narrowing corporate earnings."

The Shanghai and Shenzhen stock exchanges yesterday temporarily suspended trading of 66 listed companies based in Sichuan and Chongqing as a precautionary measure.

5m Editor