Yangzijiang falls on Europe, bulk carrier concerns

Shares of Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI) fell as much as 3 percent on Monday to a one-year low, weighed by concerns about the euro zone’s debt crisis and an oversupply in the bulk carrier market, traders said.

At 10:06 a.m., shares of Yangzijiang were 2.3% lower at $1.28 with over 5.2 million shares changing hands. 

“There are worries that the worsening debt crisis in the euro zone could have some contagion effect and dampen orders from Yangzijiang’s Europe-based customers, given that about 70% of its revenue comes from Europe,” said an analyst.

 

Investors have also turned more bearish on shipbuilders of bulk carriers such as Yangzijiang, as the sector faces an over supply in the near term, traders said.