FLSmidth Falls on Concern Over China Slowdown: Copenhagen Mover
FLSmidth & Co. A/S (FLS), a Danish maker of mining equipment and cement production plants, fell the most in eight weeks in Copenhagen on the outlook for slowing demand for its products as China’s expansion cools.
The shares slid as much as 4 percent, the biggest decline since June 1. They dropped 3.3 percent, making it the fourth- biggest loser in the Copenhagen 20 Index, to 332.3 kroner as of 2:09 p.m. in the Danish capital.
Growth in the world’s second-largest economy may slow for a seventh straight quarter to 7.4 percent in the three months to September, said Song Guoqing, a member of the People’s Bank of China monetary policy committee. FLSmidth got 30 percent of its sales from Asia last year, its biggest geographical market, according to data compiled by Bloomberg.
“Investors are fearing lower Chinese growth, as well as a slowdown elsewhere in Asia, will cool demand for metals and minerals, thus cooling demand for mining equipment,” said Jacob Pedersen, an analyst at Sydbank A/S in Aabenraa, Denmark, with an “overweight” rating. “Slower growth will also hurt demand for cement.”
European stocks also slid the most in two days since April as Der Spiegel magazine reported the International Monetary Fund may stop paying further rescue aid to Greece, citing unidentified European Union officials.
To contact the reporter on this story: Peter Levring in Copenhagen at email@example.com
To contact the editor responsible for this story: Andrew Rummer at firstname.lastname@example.org