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2009-5-14 09:39:00 a.m. HKT, XFNA
DJ MARKET TALK: I.T Set To Fall; Expects Sharp FY Earnings Drop
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| 0924 [Dow Jones] I.T (0999.HK) set to fall, retracing yesterday's 14.1% jump to 73 HK cents, after company says it expects substantial reduction in profitability for fiscal FY09 ended February vs net profit of HK$171 million in FY08, due to weak economy, goodwill impairment on below-expectation performance of China business. While announcement shouldn't be too surprising after fiscal 1H net profit down 66% on-year at HK$15 million, the interim announcement sent stock down 29% to 35.5 HK cents on Oct. 31. If retailer's 2H09, which included Christmas, Chinese New Year seasons, turned to losses, would likely spur strong selloff pressure. Stock now trading way below 250-day moving average at 99.5 HK cents despite rising 35.2% month-to-date. 10-day, 20-day moving averages coincide at around 60 HK cents, likely support for stock.(SUT) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
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(Delayed by 1 hour)
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