Sinopec Off 1.7%;L/T Fundamentals Intact-Analyst 2007/06/25 11:48 1024 [Dow Jones] Sinopec (0386.HK) down 1.7% at HK$8.90 vs HSI's 0.2% fall, hurt by news of chairman Chen Tonghai's abrupt resignation. Still, given Sinopec's size, Chen as top man unlikely involved in day-to-day ops, thus shouldn't affect running of company, says analyst; at strategic level, believes SASAC should have contingent plan so Chen's departure won't cause too much of a stir. Overall, thinks event may affect investor sentiment for 1-2 weeks, but won't change long-term fundamentals, thus won't affect his Buy call, HK$11 target. Stock 4th most heavily traded with HK$258.1 million; technically, 10-day moving average, now at HK$8.69, may act as near-term support.
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