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Economy

Shares shrug off quake impact(2)

1
2017-08-21 09:45China Daily Editor: Wang Zihao ECNS App Download

For instance, Sichuan Jinding (Group) Co Ltd, whose main business is limestone mining, processing and sales, rose 6 percent to 13.13 yuan on Aug 9, but retreated by Aug 11.

On Aug 9, Sichuan Road and Bridge Group Co Ltd, an engineering company, rose more than 5 percent intraday to 5.01 yuan but closed off highs at 4.80 yuan that day.

Both are local infrastructure and construction companies, said Zhan of China Investment Securities, implying reconstruction hopes appear to be driving some shares. "However, the uptrend may not be long-term."

Certain medicines, vaccines and devices in large numbers will likely see a spike in sales on use by the injured in the quake region and by the authorities concerned seeking to prevent outbreak of epidemics, Song Qinghui, an economist told Beijing Business Today on Aug 10.

At the same time, demand for cement, steel and some other construction materials will surge. But insurance stocks could fall on worries that claims could soar. Any resultant heavy settlements could lower insurers' profits, affecting sentiment toward their shares, he added.

  

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