The Hang Seng dropped .7% today retreating from their 3 month high reached yesterday. Short selling
accounted for 12.2% of total turnover today. Weak earnings hit Li & Fung, as their core operating
profit for the first half fell 22%, sending them to their worse single day loss since 1992. Goldman Sachs
downgraded them to neutral from buy and their target price was cut to $17 from $ 18.60. China Yurun
Food group and China Datang Corp both dropped 6.1 & 4.7% respectively. China Overseas Land and
Investment reversed gains to finish .1% down after announcing a first half profit gain of 9.3%, slightly
lower than expected.
The FTSEurofirst is currently down .4% due to weak Chinese data showing Chinese exports rose by just
1% from a year earlier, much lower than expected. Alternative fuel maker Novozymes was among the
worst performers losing 2.9%. Indices are down around Europe with the DAX down .82%, the CAC down
1% and the Madrid General down .87%.
Bank of Ireland posted a 907B Euro loss in H1 compared to 722M a year ago, stock is down 6.1%
Goldman continues to retreat from Japan selling contractor Fujita Corp for 636M.
Commodities appear to be finishing weak with crude, natural gas and silver down over 1% and gold
down just under .5%.
Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu