Big fall for China Cosco shares

(HONG KONG) China Cosco Holdings Co, Asia's biggest container-shipping line, had its biggest five-day fall in a month in Hong Kong trading yesterday after Temasek Holdings cut its stake from 12.3 per cent to 10.87 per cent last week amid concerns that a US slowdown may depress rates.

China Cosco, which has more than quadrupled this year in Hong Kong, fell 0.7 per cent to close at HK$20. The stock has dropped 15 per cent since Sept 10. The company's Shanghai-listed shares rose 10 per cent to 42 yuan, their highest closing price since trading started on June 26.
US retail sales and industrial production both rose less than expected in August, fuelling concerns about a slowdown in the world's largest economy. China Cosco generated about a third of its first-half sales on trans-Pacific routes.

The shipping industry 'has done well, but how long this will last I would be a bit more cautious about', said Winson Fong, who helps oversee about US$2.5 billion at SG Asset Management in Hong Kong. 'There's no point chasing the shares at the current level because they depend so much on trade and demand from overseas.' Mr Fong said he doesn't own any China Cosco stock.

Neptune Orient Lines Ltd, Asia's fourth-largest container line, fell 6.4 per cent in Singapore to S$4.82, the lowest closing price in two weeks.