Likely dismal earnings pull index down
By Ye Zhen |
October 12, 2012, Friday
|
Print Edition
Print Edition
SHANGHAI stocks closed lower yesterday for the first time in three days on concerns most listed companies will post poor earnings for the first three quarters of this year amid a sluggish economy.
The Shanghai Composite Index sank 0.8 percent, the most since September 26, to end at 2,102.87 points.
Among the 1,000 companies that have already released earnings forecasts as of Tuesday, only 387 companies listed in Shanghai and Shenzhen expect a profit increase for the first nine months of the year, data from Wind Information Co showed.
Just 12 percent may post better-than-expected earnings, compared with 20 percent for the same period of 2009 when firms performed the worst.
"Poor company earnings will be the major risk to the stock market this month," said Wu Xianfeng, chairman of Shenzhen Lonteng Assets Management Co.
Wang Yuqiong, an analyst at Founder Securities, said the market will find it hard "to get out of the current weak circumstance until company profitability improves."
SAIC Motor Corp fell 3.3 percent to 13.25 yuan (US$2.11) after the China Association of Automobile Manufacturers said September sales of automobiles fell 1.8 percent year on year nationwide, and down from an 8.3 percent rise in August.
Beiqi Foton Motor Co lost 3.1 percent to 6.19 yuan, and Anhui Jianghuai Automobile Co shed 1.5 percent to 5.27 yuan.
The Shanghai Composite Index sank 0.8 percent, the most since September 26, to end at 2,102.87 points.
Among the 1,000 companies that have already released earnings forecasts as of Tuesday, only 387 companies listed in Shanghai and Shenzhen expect a profit increase for the first nine months of the year, data from Wind Information Co showed.
Just 12 percent may post better-than-expected earnings, compared with 20 percent for the same period of 2009 when firms performed the worst.
"Poor company earnings will be the major risk to the stock market this month," said Wu Xianfeng, chairman of Shenzhen Lonteng Assets Management Co.
Wang Yuqiong, an analyst at Founder Securities, said the market will find it hard "to get out of the current weak circumstance until company profitability improves."
SAIC Motor Corp fell 3.3 percent to 13.25 yuan (US$2.11) after the China Association of Automobile Manufacturers said September sales of automobiles fell 1.8 percent year on year nationwide, and down from an 8.3 percent rise in August.
Beiqi Foton Motor Co lost 3.1 percent to 6.19 yuan, and Anhui Jianghuai Automobile Co shed 1.5 percent to 5.27 yuan.
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