China's Nongfu Spring jumps as key shareholder plans to raise stake

Nongfu Spring

10/07/2024 07:28

** Shares of Chinese packaged water and beverage producer
Nongfu Spring  9633.HK  rise 8.1% to HK$36.50, their highest
since July 2
    ** Stock on track for its biggest one-day pct rise since
November 2021 if trend holds; extends gain to a second session 
    ** Second biggest pct gainer in the Hang Seng Commerce &
Industry Index  .HSNC  and Hang Seng China Enterprises Index
 .HSCE , which are down 0.5% and 0.2% respectively 
    ** Co says controlling shareholder intends to purchase
additional shares from the open market for up to HK$2 bln
($256.03 mln) in six months to demonstrate confidence in co's
business development and growth potential 
    ** Citi maintains "buy" rating on expectation of a positive
market response to the news, following recent weakness in share
price amid concerns about 1H24 topline due to negative impact
from more rainfall in South China
    ** The Hang Seng Consumption Index  .HSCGSI  adds 0.2%,
while the Hang Seng Index  .HSI  eases 0.2%
    ** Stock down 20.9% YTD  

($1 = 7.8116 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))