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Stock markets unshaken despite Sichuan events

By Shi Jing in Shanghai | China Daily | Updated: 2013-04-23 09:16

Most claimed minimal financial effect, with only New Hope Group, a major feed producer in China, announcing anything significant - an estimated 25 million yuan loss from around a dozen production facilities in the province.

By the close of trading, the Shanghai Composite Index dropped 0.11 percent to end at 2,242.17 and the Shenzhen Component Index dropped 0.59 percent to 9,057.62.

But seven Sichuan-linked companies were suspended for trading, after their share prices soared to the daily limit of 10 percent at opening.

Sichuan Expressway Co's share price shot up 10.13 percent to 3.48 yuan per share before trading was suspended.

The company refused to comment on the price movement.

Shares in Chongqing Iron & Steel Ltd also jumped 10.18 percent to 3.03 yuan per share elevating its PE ratio to 53 times.

A staff member for the company said: "We have no idea of the reason for the performance of our shares."

Another construction-related company, Sichuan Shuangma Cement Ltd, saw its share price surge 10.07 percent to 7.54 yuan apiece, with a PE ratio of 140.67 times. Its stock price was closed at 6.85 yuan per share last Friday.

The company said in an announcement that it did not receive any reports of injury among its staff or damage in its facilities.

The profit earnings of Shuangma have been below expectations for some time, with its stock price sliding since 2011, and Zhang Qi, analyst with Haitong Securities Co Ltd Shanghai, said he expected Monday's rise to be temporary.

Many suppliers of medicine, cement and construction materials, though based outside Sichuan, saw their stock prices rise on Monday.

The stock price of Shandong Lukang Pharmaceutical, one of the country's main producers of penicillin, reached its daily limit of 10 percent rise to close at 5.49 yuan per share.

Huang Tiantian contributed to this story.

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