Huaneng International runs out of the big city Goldman Sachs out sure sell still see light

Huaneng International H-shares edged higher this morning but lost a large share of the market, with shares rising 1.65% per cent to HK $4.93 a half-day, trading 21.97 million shares.　　Goldman Sachs issued a report saying it had removed it from the firm's sales list but maintained the sales rating of the unit at a target price of HK $4.5, a 9% discount to market prices. Goldman Sachs points to a 11% per cent decline in Huaneng international since its inclusion on the list of confirmed sales on March 24, while the MSCI International index rose 20% in the same period. The unit may not be able to use the fall in coal prices as the market expects to achieve a recovery in earnings. Compared with the feeling of the market, geographical decentralization is relatively less important. It is expected that Huaneng international aggressive capacity expansion target may further increase interest and depreciation burden.