Yesterday, although Sino Agro Foods Inc (PINK:SIAF) issued an update on its aquaculture projects in China, its stock fell by 2% to $0.97. Trading volume was three times higher than the daily average with more than 300 thousand shares traded for the day.
Apparently, the update provoked the market, but mostly the selling part of its. The downward pressure was felt throughout the whole session and especially when SIAF touched an intraday low of $0.85, which is below the current support line.
The update which SIAF issued yesterday pointed out to the progress of its prawn farm construction in China. The company said that all earthworks had been completed and that phase one construction will be completed around the end of September this year.
The announcement, however, didn’t produce any positive effect on the stock, which seems to be driven by other more general market factors. In fact, the stock chart shows a significant decrease in SIAF stock value since the start of this year. [BANNER]
Approximately half a year ago, SIAF shares were traded at $1.8, while the current price has dropped below $1. Short-term, the moving averages continue to point in a downward direction, while the MACD indicator doesn’t give a meaningful signal at present.
So, it seems that currently the market is more or less indifferent to the company’s developments and instead other factors influence the stock. One such factor is the overall distrust in Chinese companies on the US market, aroused by a series of SEC delistings. Therefore, SIAF might have to put more PR efforts in order to parry the overwhelming selling pressure on the market.
