Sichuan Hongda falls 10% as trade resumes on SSE

20 May 2008 11:19  [Source: ICIS news]

SINGAPORE (ICIS news)--Sichuan Hongda's share prices closed 10% lower on the Shanghai Stock Exchange (SSE) as trading resumed on Tuesday following a stoppage imposed on 13 May after the Sichuan earthquake struck. 

Share prices of the phosphorus chemical and zinc producer dropped CNY3.63 ($0.52) to close at CNY32.78 on the SSE, compared to CNY36.31 it last traded on 12 May.

The company said in a statement to the SSE that it had sustained a loss of CNY387.7m in the disaster which killed 74 of its employees. 

"The news contributed to the fall in stock prices," an analyst working in a European bank in Shanghai said.

"(There is) not too much impact on petrochemical companies as there are not many big companies out there, but more on fertilizer companies (such as Sichuan Hongda)", the analyst added.  

Sichuan Hongda said on Friday that some of its coloured metal and phosphor chemical plants were damaged badly by the quake, while workshops were also found to have cracks.

Measuring 8.0 on the Richter scale, the quake on 12 May killed 39,500, according to official figures on Tuesday, while the eventual death toll was expected to exceed 50,000. It caused CNY67bn worth of damage to 14,207 industrial enterprises.

($1 = CNY6.97)

To discuss the effect of the Chinese earthquake visit the forum on ICIS connect 

By: Cheang Chee Yew
+65 6780 4359

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