Chinese buoyancy cheers up luxe stocksWednesday, 01 June 2011
The FashionUnited Top 100 Index started strong the week,
closing at 1326.08, 0.73 points above Monday´s market close. The international fashion benchmark index savored the Chinese impulse that rocketed main luxury goods’ stocks Tuesday.
Under the spot on Tuesday was the world’s largest maker of luxury goods, LVMH, which assured that its investment in Hermes International SCA is “peaceful” and not aggressive, as Pierre Gode, deputy chairman of LVMH said at a shareholders meeting of Hermes International SCA. LVMH, which owns 20.2 percent of Hermes, doesn’t intend to take control of Hermes, Gode said. LVMH shares fell 35 cents, or 0.3 percent, to 118 euros. Hermes shares fell 30 cents, or 0.2 percent, to 179 euros.
In a session owned by Eastern winds, mainly originated in buoying Hong Kong, Chinese Hua Nan's Global Luxury Goods Fund communicated they will maintain its core holdings in industry leaders such as LVMH Moet Hennessy Louis Vuitton SA and French retailer PPR SA as they continue to benefit from solid demand in China and other emerging markets, the fund's manager. Luxury goods demand from China, Russia and Brazil would continue to grow, with China expected to outrank the United States to become the world's No.1 market in 2015, Tsai Peiyi told the Reuters Summit in Taipei on Monday.
Separately, suitcase maker Samsonite, backed by private equity firm CVC Capital Partners, set an indicative price range of HK$13.5 to HK$17.5 for its $1.5billion float on the Hong Kong stock market. In the UK luxury goods retailers such as Burberry have seen their shares rise strongly thanks to booming sales to nouveau riches Chinese, reported Daily Times.
Finally, online fashion retailer ASOS posted a 41 per cent rise in profits. As published in British media, analysts expect the company, whose ranges are based on clothes worn by celebrities, to report pre-tax profits of £29million. The results for the 12 months to the end of March, due to be published on Thursday, will also show a 52 per cent jump in sales to £339.5million, according to City forecasts.