Advertisement

Parkson, ICBC dragged down by stake disposals

Reading Time:2 minutes
Why you can trust SCMP
Nick Westra

Shares of Parkson Retail Group and Industrial and Commercial Bank of China tumbled yesterday as investors ditched the stocks following news of major stake selldowns and amid a broader market pullback.

Parkson slumped the most in nearly five months, falling as much as 8.44 per cent before closing down 6.66 per cent at HK$11.50. ICBC was also in the red from start to finish, sliding 4.11 per cent to HK$4.90.

Nearly HK$800 million worth of Parkson shares changed hands during the sell-off, the most since January 2008.

Advertisement

Both companies opened lower following reports on Monday that they would each be involved in a major share disposal.

ICBC fell to the low end of a pricing range set in a sale document obtained by fund managers, while Parkson dipped below its announced placement price of HK$11.71.

Advertisement

'[Parkson's] poor share performance was mainly dragged down by the whole market sentiment,' said one analyst at a European investment bank, 'But the controlling shareholder didn't disclose the reason for the share sale, which is also part of the reason for the decline.'

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x