Shanghai stock alert

CHINA

CLOSING UPDATE: Agricultural Bank of China decreases 1.1%, led Bank sector lower 20 June 2018 16:06 CST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Shanghai market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Agricultural Bank of China, Shanghai's 2nd largest bank by market capitalisation, has decreased 1.1% to trade at CNY3.59 vs. the Bank sector which weakened 47.5 points (or 0.7%) to 6,760.4. Representing a weighting of about 17.6% of the sector, the stock accounted for 27.7% of today's loss. Trading volume was 58% of average at the end of the day. Compared with the SSE Composite Index which rose 10.3 points (or 0.3%) in the day, this represented a relative price change of -1.5%.

Technical indicators complementing today's significant downtrend:

+ The negative 0.01 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Earnings of 6.5 [5.1]

+ Price/Earnings/Growth of 2.49 [1.7]

+ Price to Book of 0.9 [0.7]

Note

Agricultural Bank of China today is at a discount of 21.8% to the 12-month high of CNY4.59 on 07 Feb, 2018. It is at a premium of 14.3% to the 12-month low of CNY3.14 on 27 Jun, 2017.

Bullish Signals:

Net profit margin has averaged 26.2% in the last 3 years. This is considered superior and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity of 14.0% is better than sector average of 12.4%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Dividend yield of 9.7% [4.4%]

Return on Equity 14.0% [12.4%]

TODAY'S ALERT

Morning Alert: Agricultural Bank of China decreases 1.4%, leads market lower

20 June 2018 10:49 CST

Agricultural Bank of China Ltd. (SS:601288) has decreased 1.4% to trade at CNY3.58 vs. the SSE Composite Index which weakened 7.1 points (or 0.2%) to 2,899.3. Representing a weighting of about 3.8% of the index, the stock accounted for 21.7% of today's loss. Trading volume was 83% of average so far today.

Agricultural Bank of China Ltd. (SS:601288; SHA:601288; CH:601288)

ISIN: CNE100000RJ0

PermID: 4297062113

Source: www.BuySellSignals.com