STOCK ALER - Chalco, cement firms lower in Hong Kong on Goldman Sachs downgrades

Aluminum Corp of China Ltd (Chalco) was lower in Hong Kong after Goldman Sachs downgraded it to "neutral" from "buy".

At late morning, Chalco shares were down 0.24 hkd or 2.76 pct at 8.45.

Goldman Sachs also cut its target price on Chalco to 11 hkd from 17 hkd. It cited cost pressures and the aluminum sector's poor profitability.

The brokerage downgraded cement companies Anhui Conch and China National Building Material to "sell" from "neutral".

It reduced Anhui Conch's target price to 43 hkd from 48, and cut China National Building Material's target to 14 hkd from 22.

"We see earnings risks for cement, zinc and gold due to upstream coal, power and labor cost pressures with demand profiles deteriorating," the brokerage said.

China National Building Material was off 0.54 hkd or 3.52 pct at 14.8, and Anhui Conch was down 1.4 hkd or 3.05 pct at 44.45.

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