Shares of Singapore’s Midas Holdings (MIDA.SI), which produces aluminium components used in trains, fell as much as 5.5% on Monday on concerns orders will slow following a train accident in China that killed at least 35 people.
At 11:29 a.m., Midas shares were down 4.7% at $0.605 on a volume of 9.7 million shares.
At 11:29 a.m., Midas shares were down 4.7% at $0.605 on a volume of 9.7 million shares.
DMG & Partners said in a report that the latest accident will be hugely negative for players related to Chinese railway infrastructure such as Midas.
“The authority will likely engage in a thorough review of controls in place to ensure passenger safety to address public concerns and hence, slow the award of future contacts,” the brokerage said.
“The Chinese authorities will have to settle all these safety issues before they can expand the rail network further,” a local trader added.
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