Singapore: Beverage stocks are being currently overpriced

Beverage stocks were plunging in the morning, as many of them deemed overpriced at current levels, says analyst Chen Huiqin at Huatai Securities, Dow Jones Newswires learned May 23.

"Many investors are now aware that their purchase of beverage stocks during the market's rally over the past month was irrational. That's pushed them to cash in," she says.

Chongqing Brewery is down 6.8% at CNY22.90, Zhejiang Guyuelongshan Shaoxing Wine is down 6.2% at CNY8.05, Jiugui Liquor is down 6.2% at CNY5.60. Adds valuation of beverage stocks are still unreasonably high, share prices should fall more in coming sessions.

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