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Premier's comment on bird flu hits poultry firms
11/11/2005 9:16

Leo Zhang/Shanghai Daily news

Poultry processors led yesterday's declines on Chinese stock markets after Premier Wen Jiabao said the country has an "arduous" task to control bird flu.
The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, dived 1.79 percent to 1,088.30. The A share index retreated 1.79 percent to 1,143.92 and the B share index lost 1.63 percent to 60.56.
The Shenzhen Composite Index, which covers China's smaller stock exchange, shed 2.34 percent to 264.69.
"The epidemic has dealt a heavy blow to poultry companies' bottom line," said Lu Chengde, a trader at Guosen Securities Co. "Investors lightened positions on fears of a wider outbreak."
Bird flu has yet to be fully controlled in the country and the danger of its spread remains in some areas, Xinhua news agency reported, citing Wen as saying during his inspection tour to a county in Liaoning Province in the northeast of the country.
Shanghai Dajiang (Group) Stock Co, China's largest publicly traded poultry breeder, plunged 4.80 percent to 2.58 yuan (32 US cents). Inner Mongolia Prairie Xingfa Co, a chicken breeder, slipped 4.18 percent to 2.98 yuan.
Haikou Agriculture & Industry & Trade (Luoniushan) Co, a processor of chicken and eggs, lost 3.17 percent at 1.83 yuan.
In other trade, Baoshan Iron & Steel Co, the listed arm of China's biggest steelmaker, eased 1.79 percent to 3.84 yuan after China Industry News said the country may take further action to deal with overcapacity at steelmakers.