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Hutchison Whampoa shares slump on Singapore debut | |
(40 minutes later) | |
Shares in Hutchison Whampoa's port business have slumped 6% on their market debut. | |
Hutchison shares slid as low as $0.95 on the Singapore stock exchange, down from their original listing price of $1.01. | |
It raised $5.5bn (£3.4bn) by selling its stake in Hutchison Port Holdings (HPH) Trust earlier this month. | |
The share sale was the biggest initial public offering executed through Singapore's markets. | The share sale was the biggest initial public offering executed through Singapore's markets. |
HPH operates two of the world's biggest container ports in Hong Kong and Shenzen. | HPH operates two of the world's biggest container ports in Hong Kong and Shenzen. |
The trust's terminals handled a record 21 million 20-foot containers in 2010, 17% more than the pervious year. | The trust's terminals handled a record 21 million 20-foot containers in 2010, 17% more than the pervious year. |
Hutchison Whampoa is controlled by the Hong Kong billionaire Li Ka-shing. | Hutchison Whampoa is controlled by the Hong Kong billionaire Li Ka-shing. |
Bad timing | Bad timing |
Sea-borne trade has been rising as demand for Asian goods picks up pace in the wake of the global recovery. | Sea-borne trade has been rising as demand for Asian goods picks up pace in the wake of the global recovery. |
While this means more business for the port operator, analysts say the timing of its stock listing has not been the best. | While this means more business for the port operator, analysts say the timing of its stock listing has not been the best. |
Asian shares have been declining in wake of the earthquake and tsunami in Japan. | Asian shares have been declining in wake of the earthquake and tsunami in Japan. |
There are concerns about the damage caused by the earthquake and tsunami, not only on Japan but also on the recovery of the region's other economies. | There are concerns about the damage caused by the earthquake and tsunami, not only on Japan but also on the recovery of the region's other economies. |
Analysts say the negative sentiment in the market is having an impact on HPH's stock price. | Analysts say the negative sentiment in the market is having an impact on HPH's stock price. |
"Hutchison is a huge issue coming out in a volatile market," said Carey Wong of OCBC Investment Research. | "Hutchison is a huge issue coming out in a volatile market," said Carey Wong of OCBC Investment Research. |
"The reception is going to be sentiment-driven," he added. | "The reception is going to be sentiment-driven," he added. |
Investors also fear that a slowdown in growth will affect the container business, hitting profits at the company. | Investors also fear that a slowdown in growth will affect the container business, hitting profits at the company. |
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