Construction and electronics firms plunge

CONSTRUCTION and electronics company stocks were among the worst performers yesterday as investors continued to switch out of loss-making sectors.

Yau Lee, Hansom and Shun Shing fell to be among the top 10 companies in percentage losses.

Construction company Yau Lee fell after more than a week of increases in its share price.

The counter dropped 7.36 per cent to close 3.5 cents lower at 44 cents on a turnover of $1.39 million.

Analysts said there was profit-taking after recent steep gains.

Yau Lee recently won a $360 million new-airport contract, which served as a catalyst for its share price increase last week.

Another construction stock, Hansom Holdings, ranked sixth in the percentage slide, with its price diving to 45 cents, a drop of 9.09 per cent.

Shun Shing, a developer of Private Sector Participation Scheme housing, posted a 7.31 per cent, or three cent, loss to 38 cents.

However, its counterpart, B & B Asia, made significant gains after a month-long slump.

The counter yesterday rebounded from $2.65 to $2.82, a leap of 6.6 per cent.

The counter was among the strongest performers, but closed with an insignificant turnover of $56,250.

Analysts said investors had started to buy the shares at what they saw was a low price.

Household electrical appliance maker, Shell Electric Manufacturing, fell 7.18 per cent to 4.2 cents, while Ultronics International dropped 10.29 per cent to 61 cents.

Analysts said profit margins of electronic products were eroding in the face of tough competition from the United States.

Daiwa Associate and Yugang International were winners on the day, with both among the top 10 in percentage increases.

However, the two stocks were among the 15 worst issues in the past 12 months.

Daiwa Associate notched up 6.66 per cent to close four cents higher at 64 cents. Yugang International leapt 9.75 per cent or eight cents to 90 cents.

Yugang posted a record 16 per cent increase in net profit to $50.19 million for the first half of this year.