Singapore-listed Hutchison Port Holdings Trust (HPHT.SI), which owns port assets, fell as much as 8.5% on Wednesday on concerns about port volume growth amid a weakening global economy, traders said.
At 12:25 p.m., Hutchison was down 5.2% at US$0.725 ($0.876) on a volume of 34 million units, 1.35 times the average daily volume in the last 30 days.
Bank of America Merrill Lynch said in a report that it has cut its earnings forecast by 11% for 2011 and by 12% for 2012 to reflect Hutchison's weak volume growth in the first half and the softening demand from the U.S. and Europe markets.
Hutchison’s dividend yield is also unattractive compared with its Singapore-listed infrastructure or shipping trust peers, BofA Merrill Lynch added. It has an underperform rating and a US$0.70 target price on Hutchison stock.
Traders said a weak U.S. dollar may also have made Hutchison's distribution income less attractive to investors in the region. The U.S. dollar has been falling against most Asian currencies.
Hutchison made its debut in March with an offer price of US$1.01.
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