Bird flu worries ruffle poultry breeding firms
18/11/2005 10:13
Leo zhang/Shanghai Daily news
Shanghai stocks edged
lower yesterday, led by companies whose business may be ruffled by the spread of
bird flu after the country confirmed its first human death from the
virus. But the downside was partly offset by a news report that China plans
to pace up efforts to boost stock prices after listed companies finish revamping
their state shareholding structures. The shanghai Composite Index, which
groups both yuan-denominated A shares and hard-currency B shares, slipped 0.05
percent to 1,095.31. The A share index inched 0.06 percent lower to 1,151.31
while the B share index grew 0.28 percent to 60.83. "Investors were shunning
bird flu-related stocks on worries of their earnings prospects," said Liu Yu, an
Orient Securities Co trader. "Poultry makers will certainly be hit hard while
airlines may suffer on their international routes if the flu continues to
spread." China's ministry of Health said on Wednesday a female farmer in
Anhui Province died from breathing problems as a result of contacting the H5N1
bird flu virus. Shanghai dajiang (Group) Stock Co, China's largest publicly
traded poultry breeder, lost 0.37 percent to 2.30 yuan (28 US cents). China
Southern Airlines Co, the country's biggest carrier by fleet, lost 1.50 percent
to 2.63 yuan. Elsewhere, China's top securities regulator Shang Fulin said
that "preferential policies" may be drafted for companies that have finished or
plan to complete converting non-tradable shares into free-floating equities, the
Shanghai Securities News reported yesterday. The stock price of listed
companies will become one of the targets when the state-asset regulator
evaluates the performance of senior corporate executives at the end of each
year, the report said. Jiangxi copper Co, China's largest producer of the
metal, slid 0.21 percent at 4.84 yuan after the country sold 20,000 tons of
copper reserves to curb price rises.
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