News
Live news: Deutsche Bank doubles investment banking advisory revenue
Hong Kong-listed consumer goods stocks dropped on Wednesday as investors braced for a lacklustre earnings season.
Shares in Chow Tai Fook fell more than 6 per cent after the jewellery chain reported a 20 per cent year-on-year decline in sales during the April-June quarter.
Anne Ling, analyst at Jefferies, said Chow Tai Fook faced a sales decline of 14 per cent for the first half of its fiscal year to the end of September. “[The] price of gold needs to stabilise further to re-attract consumers,” she said in a note to clients.
In other moves, luxury brand Prada dropped 5.7 per cent, and bottled water company Nongfu Spring declined 7 per cent.
“Continued weakness in China activity [is] likely to result in companies having mixed guidance,” JPMorgan analyst Mislav Matejka wrote in an advisory.
Hong Kong’s overall Hang Seng index fell 0.6 per cent in afternoon trading.