Quake tremors the market
The earthquake catastrophe happened yesterday in Sichuan province in China shocked the whole world community. The shockwave today rippled to the Chinese stock market.
The Shanghai composite index dropped 1.84%, as the sentiment in the market became low due to the hovering uncertainty of the situation in Sichuan. Moreover, 66 Sichuan-based listed companies and companies with business in Sichuan were suspended from trading for the whole-day session.
Companies pocket in unexpected windfalls
Not surprisingly, shares of listed pharmaceutical companies all reaped sharp gain today; stocks of four large-scale companies in the industry reached the 10% daily increase cap. The investors are betting on huge input of medical spending on the after math of the quake, which was measured at 7.8 degree on richer scale.
As the rescue contingency team is reaching closer to the epicentre, much more casualties will emerge.
Not disaster for all
How the market will perform against this anguish background is unpredictable, however the market analysts predict that investors will flock into companies in construction sector and medical sector, the two most directly affiliated industries in the region rebuilding work after the destruction.
Posted by julianlei 